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News
Creative Sees Profit Drop on Stiff MP3 Player Competition
Wednesday, January 25th, 2006 at 2:00 PM - by Brad Cook
Creative on Thursday reported increased revenue for its previous financial quarter, but the Singapore company's net profit took a hit as stiff competition from Apple and other MP3 player makers took its toll. According to an IDG News Service story, revenue jumped from US$375.1 million to $390.8 million in the year-ago quarter, but net profit declined from $11.8 million to $8.2 million.
However, Creative did see increased sales of its MP3 players, audio products, Web cams and speaker systems, and it was able to reduce inventory. The company said it sees its new Zen Vision:M to be a popular device this year. The 30GB MP3 player can also display photos and videos and has a 2.5-inch LCD screen.
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