Creative declares 'war' on Apple iPod, shoots for 40% market share of MP3 players
Tuesday, December 21, 2004 - 10:12 PM EST
"War has been declared. Not the conventional type with the troops, tanks, and smart bombs, but an entertainment war for the $3 billion global music player business. Creative Technology has decided to move in against the giant Apple in an attempt to capture a 40% market share for MP3 music players.
In the three years since the iPod's launch, it has become the worldwide player of choice, claiming about 85% of the market, so to call this an uphill fight is something of an understatement," Kelvin Taylor writes for The Motley Fool. "Creative's plan of attack is a two-pronged approach. First, launch a wave of spending to the tune of $100 million to market its players such as the Zen Touch.
This is very iPod-like in appearance, and has a 24-hour battery life, twice that of the best iPod. ne hang-up for the Zen Touch -- other than there isn't any camouflage style available -- is that tracks from iTunes won't easily transfer. The files have to be converted into MP3 files first, but tunes from RealNetworks' music store, Harmony, can be easily transferred to the player," Taylor writes.
Taylor continues, "Secondly, the company has recruited an ally to help gain some advantage: Microsoft. Creative was one of the first hardware manufacturers to release a combination video/music player based on Microsoft's Portable Media Center concept earlier this year. And while so far reaction hasn't been great, many consider portable video players to be an important product category going forward."