UnCreative 2

Came across this nice article on Yahoo saying how the Apple suit is seen hurting Creative in long run. An extract:

"The lawsuit will be a long process, and even if they win, any damages awarded will be a one-off gain. This does not change Creative's business fundamentals and the fact that there is nothing much to look forward to on the operations front."

Kim Eng Securities analyst Gregory Yap said Apple was unlikely to give up its lucrative iPod business without a long, expensive fight -- time and money that loss-making Creative cannot afford to waste.

"Creative's suit against Apple may bring relief to the share price in the short term, but in the long term, it will distract and divert management attention and company resources when both are needed to turn around the ailing business," he said.

Earlier this month, Creative swung to a larger-than-expected quarterly net loss of $114.3 million in its fiscal third quarter ended March, compared with a $15.9 million profit a year ago, after a plunge in music player prices squeezed margins and forced it to write down its inventory.

Let's hope this whole thing hastens the demise of UnCreative.