Sales exceed targets on successful strategy and stronger R&D
HONG KONG, Jan. 13, 2011 /PRNewswire-Asia/ -- TCL Communication Technology Holdings Limited (“TCL Communication” or “the Company”, together with its subsidiaries referred to as “the Group”; HKSE stock code: 02618) today announced its unaudited handsets and accessories shipment data for the month of December 2010 and the twelve months of 2010.
During the month of December 2010, the Group continued to achieve good growth in handsets and accessories shipments. Total sales in the month reached 4,253,413 units, up 63% from the same period last year, while sales to overseas markets saw a remarkable growth, surging 103% year-on-year to 4,144,026 units. For the fourth quarter of 2010, cumulative sales volume was sharply higher at 12,491,087 units, representing growth of 83% year-on-year and 31% quarter-on-quarter. The strong growth was led by a 105% jump in overseas sales to 12,101,796 units. Cumulative sales volume for the full year 2010 leapt 125% to 36,222,743 units from 2009, exceeding the expected sales target.
Throughout the year of 2010, the Group continued to deliver outstanding business performance, with handsets and accessories sales exceeding 36 million units in 2010 as positive market responses to the Group’s products continued to sustain their growth momentum. The outperformance was the result of the Group’s continuous efforts to fine-tune its sales strategy by expanding the distribution channels, exploring the open markets, and forging closer strategic partnerships with major telecommunications operators around the world.
Thanks to the successful “Step-up” strategy, the Group has been able to maintain its lead in the entry- to mid-level market while winning growing market acceptance for its high-end products during 2010. On product development, the OT-800 (“Jade”) QWERTY keypad handset has been a popular market success since its launch in 2009. The model sustained its momentum in 2010 and went on to sell for another 1.2 million units for the year. The OT-808(“GEM”) model doubles up as a powder compact and has proven to be immensely popular with female users. The OT-708 (“One Touch Mini”) touch screen handset, with its intuitive designs and practical applications, sold for as many as 1.6 million units in 2010. In September 2010, the Group successfully launched its first Android-based 3G handset OT-980 (“Opal”) to overwhelming market response.
Backed by growing R&D capabilities, the Company’s innovative products won industry recognition in November 2010 when it was named the winner of China Patent Award of Excellence for its mobile network real-time transmission storing method and system,. The patent was one of the Group’s core patent inventions and an important application patent for 3G and 4G communications. The annual award, organized by the State Intellectual Property Office, honors the best inventions out of all the patents issued in China each year covering a cross section of the technology industry. In December 2010, TCL Communication officially entered the 3C era with the successful acquisition of the mobile intelligent terminal devices technology through a technology transfer agreement. The move will help drive the Group’s continued effort in developing its smartphone product series.
In addition, the Group’s Board of Directors approved the proposed issuance of Taiwan Depositary Receipts (“TDR”) on 24 December 2010. The Taiwan capital market is no stranger to the mobile handset business and it has an abundance of experienced equity analysts covering the sector. Offering the depositary receipt in Taiwan’s capital market, well known for its many quality issuers in the technology industry, will also help increase the liquidity of the Group’s stock, broaden its shareholder base by drawing investors from Taiwan and other overseas markets, enhance the brand and corporate image of the Group, and ultimately bolster investor confidence. As the economies of China and Taiwan continue to integrate, the issuance of TDR will also help the Group expand its overseas business based on organic growth while providing the Group with solid capital support for future development.
Commenting on the Group’s sales performance in 2010, Mr. Guo Aiping, CEO of TCL Communication said, “We are immensely pleased with our sales performance in 2010 which was made possible by the strong showing of our innovative products in the marketplace and robust sales in overseas markets. Leveraging the strength of our “Step-up” Product Strategy, we have been able to strengthen our market leadership in the entry- to mid-level markets while continuing to make good progress in expanding to high-end markets. Going forward, the Group will keep strengthening its core R&D capability to create new products that meet market demand while launching more convergence products to enrich the user experience for all in the 3C era.”
Handset and Accessories Sales Volume (Unaudited Data)
| (Units) | December 2010 |
YoY Change (%) |
Oct-Dec 2010 |
YoY Change (%) |
Jan-Dec 2010 |
YoY Change (%) |
| Total | 4,253,413 | +63% | 12,491,087 | +83% | 36,222,743 | +125% |
Sales volume data is also available at the Company’s website: http://tclcom.tcl.com.
About TCL Communication
TCL Communication Technology Holdings Limited (stock code: 02618) engages in the design, manufacturing and marketing of a variety of mobile handsets and accessories and is an acknowledged leader in alliances with telecommunication operators. Its headquarters are in the PRC, and its products are sold in more than 100 countries and regions under two brands: TCL and ALCATEL. For more information, please visit its website at http://tclcom.tcl.com.
For further enquiries, please contact Hill & Knowlton Asia Ltd:
Email: tclcomm@hillandknowlton.com.hk
Agnes Suen
Tel: (852) 2894 6251 / 9050 5406
Bianca Tse
Tel: (852) 2894 6319 / 9363 7702
