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Analysts—AKA journalists who are paid better—are seeing some trouble brewing in the world of Creative. While they're pumping out some hot product, Apple and the Taiwan-SoKo-mafia of tiny OEMs with cool PMPs are eating their lunch.

Creative also suffered in the September quarter as Apple Computer Inc cut prices by up to 20 per cent to clear excess stockpiles, and analysts said Creative's fundamentals are likely to worsen.

"Competition is intense and going to get more cut-throat. ASPs (average selling prices) and margins continue to decline and Creative faces large losses in the near to medium term,' said CLSA Asia-Pacific Markets analyst Atul Goyal.


Creative deserves to live! We need downloadable movie services and we need them now, people. Let's start a petition or something. Because these PMPs aren't going to sell themselves until Apple let's Joe Middle-Age download Chinatown in MPEG4 for $5.

Prognoses not boding well for Creative [DAPReview]