Creative has to find a way out. It's a victim of the volatility in flash memory prices. |
If people expect flash prices to continue to fall, it will inevitably lead to slower orders. |
The Chrysalis comments will come as welcome relief for a sector under intense pressure, although we believe that the comments should be seen predominantly as a reflection of the dynamics of the London market. |
With two-thirds of revenue derived from the highly volatile personal digital entertainment segment, we anticipate Creative will need to take further restructuring charges to right-size its operations. |