Creative Technology to begin US sales of SXFI AMP

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Creative Technology said on Monday that it would start taking pre-orders for its SXFI AMP from the U.S. starting on 1 November following what the Singapore-based speaker maker said were strong sales after the September launch of its Super X-Fi headphone in Singapore.

“The SXFI AMP was snapped up in record numbers during the first few hours of its launch and has achieved a very high satisfaction number, with over 99 percent of customers impressed with its performance, way above industry norms,” Creative claimed in a filing to SGX before the market open on Monday.

The SXFI AMP dongle uses an amplifier which provides maximum audio fidelity and can be used with studio-grade headphones, Creative has previously said. The SXFI AMP is priced at S$219, or US$149.99, Creative has previously said.

Sim Wong Hoo, CEO of Creative, said in the statement that the company has seen a “huge number” of requests from the U.S. about the product’s availability there.

Darran Nathan, business director of Super X-Fi, said in the statement that the company was “stoked” at the response to its new product.

The company pointed to positive reviews of the product from the Straits Times, the South China Morning Post, TechGoondu, CNET, Geek Review and AVS Forum.

However, some analysts weren’t certain how well the product’s positive reviews would translate into earnings.

In a recent note, KGI forecast that Creative could sell around 40,000 headphones or dongles in the first year, translating into revenue of around US$6 million. Assuming a 20 percent net margin for Super Xi-Fi products, that suggests the segment would contribute an additional US$1.2 milion to Creative’s bottom line, KGI had estimated.

KGI called that “inadequate” as Creative’s net losses have averaged US$27 million over the past five years, excluding one-off earnings from lawsuits.

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