Singapore-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.
Commenting 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. He added that the company will also need to look for new products to boost its bottom line.
Concurring, Jayesh Easwaramony, vice president at Frost & Sullivan's Asia Pacific ICT Practice, said Creative has to look for niches that it can be profitable. He pointed to the portable speaker space as an example where competition is lower and unique products can have good consumer appeal.
"Creative is struggling because most of their product categories are mature,"