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Creative Introduces New Zen Micro MP3 Players

TMO at CES - Creative Introduces New Zen Micro MP3 Players

by , 8:30 AM EST, January 6th, 2005

LAS VEGAS, NV -- Creative announced new versions of its Zen Micro MP3 player at the Consumer Electronics Show in Las Vegas, NV on Thursday. The company is adding 1 gigabyte flash memory model, as well as 4GB and 6GB models powered by micro drives. The company's new models add to the 5GB model already on the market, and strengthen its position against market-dominating Apple with its iPod.

"Since we first shipped the Zen Micro 5GB model in November, we have experienced tremendous demand and sold out in many locations," said Sim Wong Hoo, chairman and CEO of Creative, in a statement. "To meet this overwhelming demand we plan to increase our production capacity significantly this quarter. At the same time, we have introduced a variety of prices and capacities for the Zen Micro: a 1GB flash memory-based model for only $199 and a 4GB model for only $229, which has twice the song capacity of the iPod mini and far more features for a lower price. We even introduced a Zen Micro with 6GB capacity that can hold more than 3,000 songs."

Despite Sim Wong Hoo's claims to the contrary, the capacity of the 4GB Zen Micro is actually the same as the capacity of the 4GB iPod mini.

Creative's Zen Micro digital media devices support MP3 and Windows Media Audio format, but are not available for the Mac. The company, one of the first to enter the hard drive digital media device market, has struggled to gain market share against Apple since the introduction of the iPod in 2001.

The Zen Micro line has been a big part of the company's strategic fight against Apple, and Creative offers the 5GB model in 10 different colors, and includes features like an FM radio turner and a built-in voice recorder not found in Apple's iPod line.

Several Wall Street analysts have been advising their clients in recent months that Apple intends to enter the low-end market for these devices with a flash memory iPod. Apple's policy is to not comment on unannounced products.

The 1GB model of the Creative Zen Micro will be available in the first quarter of 2005 for only US$199.99. The 4GB model, available later this month, is priced at only $229.99. The 5GB Zen Micro is currently available for $249.99. The 6GB model will be available later in January for $299.99.

The company has not yet added information about the new devices to its Web site, but is showing them at CES in its booth.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

I wonder why the new 1 GBytes model is priced at $199. I recall it was priced at $179 previously. Also, why sell a 6 GBytes version at $299? Creative is trying to cover all bases. So many different color and harddrive capacities.

Close Name:jimothy Posts: 612 Joined: 04 Jun 2004
Subject: Deceit, iTunes Music Store, and MacWorld predictions

I see Creative has succumbed to the same deceitful marketing practices as Sony (with regard to purported song capacity). And what wonders that campaign has done for Sony.

Also, I think this points to why it will be a while before Apple increases the bit rate of the iTMS: To do so would mean they'd have to lower the advertised song capacity. I don't see them offering multiple bit rates, either, since this would complicate the buying process, and audiophiles and ÑŒber-geek snobs do not make up a significant market (and the latter would whine about anything other than Ogg, anyway).

Now, onto my predictions: Apple will release a 5- or 6GB iPod mini for $249. If 6GB, Apple will drop the price of the 4GB to $199 (if 5GB, I predict they'll just sell one model, at the current price of $249). Each player will be somewhat "minier;" that is, Apple will decrease their size and weight further, but the overall design remains the same. Continued improvements in firmware and hardware will mean greater battery life without increasing weight.

With this improved battery life, reduced weight, and lower price point, there will be little point in releasing an iPod flash.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

Just look through the top sellers in MP3 and electronics category at Amazon.com.

iPod silver mini is still selling very well. So dropping to $199 doesn't make sense. If I am Apple, I will discontinue the gold and green color iPod mini and drop the price of iPod mini to $229, similar to the 4 GBytes Creative Zen Micro.

The idea is to keep the pressure on Creative and set the stage for doubling the capacity to 8 GBytes in the second half of 2005. However, this may not be what Apple will do if what Seagate's claim is true: their hard drive is much cheaper than Hitachi and they have capacity for high volume. Apple will likely release a 5 GBytes iPod mini at $249 and discontinue the current 4 GBytes.

As for the flash iPod, I look through the prices of MP3 players selling at Amazon.com:

256 MBytes flash varies from $68 to $100
512 MBytes flash varies from $114 to $130
1 GBytes flash varies from $150 to $229

Note: I exclude those out-of-date MP3 players that sold at deep discount

Pricing the 1 GBytes flash iPod at $179 is the most appropriate. $199 is reserved for possible reduction of iPod mini to this price and poise the flash iPod to $149 if necessary.

Close Name:Guest
Subject:

It's interesting that alot of people go on about the Creative Zen Micro when it does not even work on a Mac. Not exactly a competitor, from a Mac point of view.

The Rio Carbon, on the other hand, has similar pricing, includes voice recording, 5gb drive, adjustable equalizer, stopwatch (for what it's worth!), bookmarks, AND works on Macs with or without iTunes! BTW, it's also the world's smallest hard disk based player....

I have both a 3G iPod and the Carbon. I'm finding that the Carbon gets a great deal more use lately.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

Quote
Anonymous wrote:
... I have both a 3G iPod and the Carbon. I'm finding that the Carbon gets a great deal more use lately.
Care to elaborate?

Close Name:Guest
Subject:

what is the carbon?

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject: Carbon is a MP3 player from Rio

Rio Carbon is a MP3 player. My question is why use Carbon more often than iPod?

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