SINGAPORE (Mar 1): DBS Vickers analyst Sachin Mittal says he is impressed with the 3D sounds produced through headphones by Creative Technology' s Super X-Fi dongle.

See: Creative Technology skyrockets 147% on ' holy grail'

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.