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"The fact that they have so many quarters of losses indicates some fundamental issues with the company's future and just a CEO change may not be the answer." "What Creative needs is a strong product roadmap that can change their fortunes," he stressed. While CEOs of many underperforming western tech firms-such as Research in Motion and Yahoo-have either stepped down or been replaced, Frost & Sullivan's Easwaramony noted that the culture in Asian companies tends to be different from such multinational companies. In his message to shareholders in the report, chairman and CEO Sim Wong Hoo touted the company’s JAGUAR3 reference design kit's compact form and light weight, adding that it also gave partners such as OEMs a low cost and quick-to-market solution by allowing them to make tablets for as low as US$100 each.ĬEO change may not be enough to change company
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However, based on Creative's annual report for the fiscal year 2011, the company is betting on the growing tablet market with its Android reference design kits. The MP3 product category which Creative was famous for is also facing a challenge from mobile handsets as many users in the emerging markets use their phones as music players instead of buying a separate MP3 player, said the Frost & Sullivan vice president.Ĭreative has not responded to ZDNet Asia's multiple requests to talk to executives to understand the company's business strategy for 2012. "Moreover it is squeezed at both ends, at the higher end of the market by players like Apple and at the lower end by low cost competitors from China." "Creative is struggling because most of their product categories are mature," said Easwaramony, commenting on the company's continued losses.
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He pointed to the portable speaker space as an example where competition is lower and unique products can have good consumer appeal. He added that the company will also need to look for new products to boost its bottom line.Ĭoncurring, Jayesh Easwaramony, vice president at Frost & Sullivan's Asia Pacific ICT Practice, said Creative has to look for niches that it can be profitable. Selecting a region changes the language and/or content on -based Creative Technology will need to turn to niche segments to boost its bottom line as the market it has traditionally competed in has become mature and saturated, say market observers.Ĭommenting on Creative's 14 consecutive quarters of losses, Ng Kian Teck, lead analyst at SIAS Research, told ZDNet Asia in a phone interview that the company needed to restructure its business, whether it is by cutting costs or removing business units that are loss-making. Void where prohibited, taxed or restricted by law. This pricing is subject to change without notice. Offer may not be assigned, exchanged, sold, transferred, or combined with any other discount or offer, or redeemed for cash or other goods and services. This pricing is limited to one (1) purchase of one (1) Creative Cloud annual membership per customer. This pricing is not available to OEM, commercial or volume licensing customers. This pricing is available for first time membership only and limited to eligible education customers who purchase directly from the Adobe Store or by calling Adobe Sales. At the end of your offer term, your subscription will be automatically billed at the standard subscription rate, currently at US$359.88/yr (plus applicable taxes), unless you elect to change or cancel your subscription.
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One Year Prepaid Creative Cloud Introductory PricingĮligible students 13 and older and teachers can purchase an annual membership to Adobe® Creative Cloud™ for a reduced price of US$239.88 for the first year. This pricing is valid for purchases of an annual plan, which requires a 12-month contract. At the end of your offer term, your subscription will be automatically billed at the standard subscription rate, currently at US$29.99/mo (plus applicable taxes), unless you elect to change or cancel your subscription. US$19.99/month Creative Cloud Introductory PricingĮligible students 13 and older and teachers can purchase an annual membership to Adobe® Creative Cloud™ for a reduced price of US$19.99/mo for the first year.
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