Creative Refocuses to try and become iPod threat

RED HERRING reports Creative Technology "would de-emphasize its professional workstation graphics business in favor of the portable handheld device market." The Singapore-based company will "refocus its 3Dlabs subsidiary on producing handheld devices that require intensive processing for video, audio, and 3D graphics" in hopes of unseating Apple from the top of the portable multimedia device heap.

Sam Bhavnani at Current Analysis said, “Creative is refocusing their efforts from higher-end computers to the mobile market, which they believe is going to be moving much faster. A company like Creative is fighting tooth and nail with companies like Apple in the digital audio space, and they have ATI and Nvidia on the other hand [in graphics technology]."

According to the article, "personal digital entertainment made up 67 percent of Creative’s revenue, followed by audio and speakers at 13 percent each. Other categories amounted to only 7 percent."

Bhavnani added, "Creative saw they were able to find a niche within the digital audio space. They will refocus their efforts away from what 3D used to do and will focus everything on mobility."