Strategic shift at Creative Tech? ~ Creative Labs Zen MP3 Players Sound Blaster Card
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Tuesday, August 4, 2009

Strategic shift at Creative Tech?

Strategic shift at Creative Tech?
Is entrepreneur Sim Wong Hoo crafting a new strategy for his company?

Talk of such a shift seemed to prompt investors to pile into Creative Technology yesterday, as its share price vaulted to an 11-month high of $5.90. The surge of more than 30 per cent or $1.40 over the previous trading day made the counter among the day’s top gainers in percentage terms.

When queried by the Singapore Exchange, Mainboard-listed Creative said it was not aware of any reasons behind the rise, but highlighted its three announcements last week.

All three were about initiatives targeting the OEM (original equipment manufacturer) segment, where companies buy products designed by, say, Creative, and resell them under their own brand. “From recent announcements, it looks as if they are moving towards selling to OEMs rather than their own brand, which investors may like,” an unnamed analyst told Dow Jones newswires.

For instance, Creative and THX — the firm founded by American filmmaker George Lucas — have teamed up to co-develop THX TruStudio PC, a suite of audio technology solutions that “enables a significant quality differentiation for OEM PC manufacturers that incorporate the solution into their PCs”, Creative said on July 30.

Creative is scheduled to soon release its results for the fourth quarter ended June.

via Today


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