In a prepared statement announcing a $50 price cut for many models of its MP3 players,
Creative Labs Inc., Chairman and CEO Sim Wong Hoo said that his company had competitors on the defensive. Hoo has been an outspoken competitor to Apple’s market leading iPod digital music player.
“Clearly with the success of the Zen Micro and our shipment of more than two million MP3 players last holiday season, we have gained huge momentum and are putting our competitors on the defensive,” said Hoo. “We can further drive our momentum by dropping the price of our Zen Micro MP3 players.
The new pricing strategy from Creative comes just six days after Apple announced new models and pricing of its iPod.
Creative’s new pricing includes its new Zen Micro 4GB MP3 player priced at US$179.99 after a $20 mail-in rebate, the Zen Micro 5GB MP3 player at $229.99 and the Zen Micro 6GB at $249.99.
In comparison, Apple’s 4GB iPod mini sells for $199, while the 6GB model sells for $249.