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Creative declares war on iPod

Slashes prices across the board

Creative has launched a full-scale attack on Apple's iPod market share in the UK, aggressively slashing prices across its product range.

The company has cut prices significantly, and its announcement of the discounts clearly referenced Apple as its main market competitor.

The 8GB Zen MicroPhoto now costs £150 – down from £180. "This is £30 cheaper than the iPod nano," Creative asserted.

The company has also slashed prices on its Creative Zen Nano Plus range of flash-based MP3 players. "Now the same price as Apple's 'random' flash offering", the company declared. These products now start at £35 (for the 256MB version).

Creative recently revealed an operating loss of about $55 to $65m (roughly £31.5m to £37.3m) for the three months ended 31 March. Revenues for the quarter came in at "about $220 to $230m" (£126m to £132m), the company said, compared with $333.8m (£191.5m) in the same period a year earlier. Its stock currently trades at $6.26 (£3.59).

Creative sold more than eight million music players in 2005 – but clearly hopes to profit from its newly announced pitch on price.

This story first appeared on Macworld.co.uk.


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