Creative Technology continues to suffer as Apple's digital music success knocks the company aside.

Analysts believe Creative will return an $8.8 million loss in its first quarter, which ended September 30. The company is growing, but this is its second concurrent loss-making quarter.

Analysts expect first quarter revenue to be $321.1 million, up 53 per cent year-on-year and 5.1 per cent sequentially.

In contrast, Apple secured gross sales valued at $1.212 million on its iPod products alone.

"We believe the outlook for Creative will remain gloomy due to ferocious competition in the MP3 player market, especially with the launch of new iPod products by Apple," broker CIMB-GK told Dow Jones.