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Prognoses not boding well for Creativecomment: 0 | Tuesday, August 09 (2005) 11:23AM | Posted by Robert Sinke
Despite the huge investments Creative has been putting through during the last couple of months, market analysers expect the company to end up in the red figures in Q4 (ended June, net loss of some 7.2M USD). Anyone got some shares left?
"'[...]Creative also suffered in the September quarter as Apple Computer Inc cut prices by up to 20 per cent to clear excess stockpiles, and analysts said Creative's fundamentals are likely to worsen.
"Competition is intense and going to get more cut-throat. ASPs (average selling prices) and margins continue to decline and Creative faces large losses in the near to medium term,' said CLSA Asia-Pacific Markets analyst Atul Goyal.
[...]Creative chief executive Sim Wong Hoo pledged US$ 100 million in worldwide marketing spending this year and promised to out-market its rivals, but analysts are sceptical that Creative has the resources to effectively compete against the bigger players."
Creative has to present its quarterly figures next Thursday. So guess we'll have to wait for that before setting any buildings on fire.
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