Creative Technology Makes Profit on Players

Creative Technology, a maker of digital media players and a supplier of various audio equipment for personal computers (PCs), has reported a profitable quarter amid helpful sales of music players and a payment by Apple. But, it seems, that Creative's business for which the company is known for – audio devices for PCs – seems to continue to drop. Revenues for the second quarter of fiscal year 2007, ended December 31, 2006, were $424.4 million, which include a $100 million paid-up license from Apple for use of the Creative Zen patent in its products, which means that revenues that came from sales of products totaled $324.4 million during the quarter.

"We're very pleased with the sales of our Zen V and Zen V Plus players in the holiday quarter. Overall, we sold a total of 2.5 million of our MP3 players in the period," said Craig McHugh, president of Creative Labs. While Creative Technology indicated that it was pleased with the sales of its own-brand Zen music players, some observers noted that audio cards – the product for which Creative Labs became known for in the nineties – now account for about 10% of the company's sales. If average sales price of an audio card is $100, then Creative Labs ships about 324 thousand of audio cards per quarter, meaning that less than 1% of 57.15 million PCs sold per quarter include a discrete audio card by Creative Labs. However, a noticeable portion of advanced users still prefer SoundBlaster over competing options: according to a recent poll about 14% of gamers use an audio card by Creative Technology.

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News source: Xbit Labs

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12 Comments

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I stopped buying Soundblasters when the integrated audio had better quality. It's nice not to have to buy anymore equipment and better off without having to search for drivers.

Agree with Jeev. DRIVERS Please, the things that make your hardware work, sometimes, I assume that they are having trouble creating drivers that work good due to Vista needing good drivers, somethng creative aint exactly known for.

they should use their profits to install a system that allows them to accept paypemts from Debit cards like Solo and mistro. as they only accept Credit cards like Visa and mastercard, most people dont want or have a credit card.

Surge.......

Did a quick Google search, and found this statement:

"A total number of 669 million transactions took place in December through the use of plastic cards" (this is in the UK alone)

Now, either your statement is wrong and most people do have a credit card, or someone is using theirs a LOT.

Anyway, I'm glad I contributed to this nice profit figure :P

xSuRgEx said,
... most people dont want or have a credit card.

??? Maybe most of the people under the age of 13. The rest of the adult world carries some sort of bank card (credit or debit).

What color is the sky in your world?

How rude or stupid are you people! I agree with xSuRgEx - Who wants a credit card?. I have four debit cards but I won't touch a credit card even if they paid me. Understand the difference between credit and debit - then post.

pjak said,

How rude or stupid are you people! I agree with xSuRgEx - Who wants a credit card?. I have four debit cards but I won't touch a credit card even if they paid me. Understand the difference between credit and debit - then post.

yes they are

but

there always visa/mastercard debit card's and pre-paid credit cards as well

best and easy way to put on the exact amount ytou need pay and worry about nothing else since there won't be nothing left for anyone to take

pjak said,

How rude or stupid are you people! I agree with xSuRgEx - Who wants a credit card?. I have four debit cards but I won't touch a credit card even if they paid me. Understand the difference between credit and debit - then post.

A debit card withdraws money from your account at the time of purchase. A credit card is just that, a credit line where all your transactions accumulate during a specified amount of time. Once the cycle is over, in most cases you have 30 days to pay the amount owed without accumulating interest charges. Anything not paid on or before the due date is charged interest. A charge card is similar to a credit card in that you are billed for your transactions at the end of the cycle but in most cases payment is due within the 30 days and does not allow you to carry a balance.

Considering you're losing out on about 30 days of interest with a debit card since funds are taken immediately, you are essentially paying more to use your debit cards as opposed to having a free credit card.

Sounds like you don't have to discipline to own a credit card, hence your negative views towards them.

Obtaining credit cards are one of the easiest ways of establishing your credit. Pay off the balance before iterest accumulates and you have no problems. Take advantage of the introductory 0% APRs and other offers.