Creative's 3D audio provides the perception of spatial sound which humans hear in real life. Expected to be launched in mid-2018 at a retail price of US$150 ($199), the Super X-Fi dongle is compatible with headsets, smartphone or consumer entertainment devices.
Creative will also launch a free app targeted to reach 50 million customers in two years. In addition, the company will also license the technology to other players.
In a Thursday unrated report, Mittal says games and movies featuring Augmented Reality (AR) and Virtual Reality (VR) is expected to drive demand of Super X-Fi from premium headset users.
"While some players claim to provide 3D audio experiences via headphones, none of them features the plug-and-play capabilities and the customised listening experience of Super X-Fi in our knowledge," says Mittal.
"We assume that Super X-Fi would be able to capture a 0.5% market share of the global headset market in FY20 ended June, resulting in sales of US$232 million," says Mittal.
DBS has a fair value of $5.56 per share and $8.10 per share under its conservative base-case scenario and bull-case fair assuming 0.8% market share, respectively.
As at 2.40pm, shares in Creative are trading at $4.02.
