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SinoHub Secures Additional Phone Orders from HT Mobile

2010-11-29 16:03 1043

Company anticipates producing over 1 million custom mobile phones for HT Mobile in 2011 using its joint design platform

SHENZHEN, China, Nov. 29, 2010 /PRNewswire-Asia/ -- SinoHub, Inc. (NYSE Amex: SIHI), a rapidly-growing electronics company in the People's Republic of China, engaged in electronic component sales (ECP), private label, custom design mobile phone manufacturing and sales (VCM), and supply chain management (SCM) services, announced today that it has received initial orders for two new 2.75G phone models from HT Mobile, with shipments to commence in December 2010. HT Mobile has given indications to SinoHub that it anticipates ordering between 200,000 and 300,000 units of each model from during 2011.

"We are delighted to secure additional phone orders from HT Mobile, a leading distributor in Indonesia and a highly valued customer to whom we have shipped approximately 300,000 handsets to date," said Harry Cochran, CEO of SinoHub. "These orders incorporate our joint design process, which enables our customers' to leverage their knowledge of local markets with innovations from leading design houses in China to achieve specifications for mobile phones that create sustainable competitive advantages.  HT Mobile sells over 6 million mobile phones per year in Indonesia and has communicated their intention to produce a significant portion of their 2011 volume with SinoHub using our joint design model. These anticipated orders along with indications for additional models, give us confidence we will produce over 1 million phones for HT Mobile during 2011, which will be roughly equal to our entire production for all customers during 2010."

Currently, most suppliers of mobile phones in China only focus on a customer's immediate needs. In a highly competitive and dynamic market, most phone distributors are seeking long-term, stable and effective product strategy collaboration with their suppliers. SinoHub's business model leverages four primary competitive advantages: online reference designs from which customers can pick a starting point and a joint design process to produce a winning specification; deep relationships with over 20 of China's leading design houses to continually update the collection of online reference designs; the ability to manufacture limited production runs of customized phones; and an automated, transparent supply chain management system that allows customers to track the entire design, production and delivery process on a real-time basis.

SinoHub's joint design model, which it employs with HT Mobile and other customers, has been embraced for its transparency, flexibility and effectiveness. By providing customers with the ability to review more than 200 different reference designs online from over 20 leading Chinese design houses and then customize the handset specification, SinoHub believes that it gives distributors and carriers the ability to deliver mobile phones with competitive advantages that better fit the requirements of their local markets and therefore have longer model lives.

"We have built an efficient and flexible platform for mobile phone production, which leverages both our core ECM and SCM business units. We believe our differentiated model provides a foundation for SinoHub to substantially deepen its relationships with existing customers, as evidenced by these orders from HT Mobile, while securing new relationships with large mobile phone distributors in emerging markets. Furthermore, we currently have the capacity to produce approximately 3.2 million phones annually and expect to fulfill larger orders, including smartphones, for existing and new customers during 2011," said Lei Xia, President of SinoHub.

About HT Mobile

HT Mobile is a leading mobile phone distribution company in Indonesia. After launching in 1999 as a distributor for Siemens AG, the company grew steadily into 2005 when HT Mobile's management, mobile phone experts within the Indonesian markets, was involved in the transition of the Siemens AG partnership to a BENQ Siemens AG relationship. In 2007, the company launched its own brand, with the HiTech brand officially launched as the first mobile TV device in Indonesia.  Within the third month of HiTech's launch, the product was sixth in GSM phone sales in the region, as a mobile TV pioneer.  Since 2007, HT Mobile has grown to offering more than 40 mobile phone brands, while steadily growing its market share in the Indonesian market.  In 2008, the HiTech brand became the top selling mobile TV device, with a new management team focused on building upon long-term customer relationships, and expanding its mobile phone coverage and services. In 2009, the HT Mobile brand was launched, continuing the company's successful strategy of introducing new mobile phone products with compelling features and designs at affordable prices.

About SinoHub, Inc.

SinoHub, Inc., founded in 2000 by veteran entrepreneur Harry Cochran and electronics industry veteran Lei Xia to play a part in the electronics revolution in China, provides virtual contract manufacturing, electronic component purchasing, and world-class supply chain management services with transparent information access for participants in the electronic components supply chain in China. SinoHub conducts substantially all of its operations through its wholly-owned subsidiary SinoHub Electronics Shenzhen Limited in the People's Republic of China and its wholly-owned B2B Chips subsidiary in Hong Kong, which offers electronic component purchasing and virtual contract manufacturing services currently focusing on the mobile phone market. For more information, visit the Company's Web site at http://www.sinohub.com and the B2B Chips Web site at http://www.b2bchips.com .

Cautionary Statement Regarding Forward-looking Information

Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the United States federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," or "continue" or the negative of those terms. These statements involve risks known to the Company, significant uncertainties, and other factors, many of which cannot be predicted with accuracy and some of which may not even be anticipated, which may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by those forward- looking statements. Such risks, uncertainties and factors include, but are not limited to, the Company's expectation of additional orders from HT Mobile and other customers, the Company's ability to expand its customer base, the sustainability of the competitive advantages which the Company believes are generated by its current business model, the Company's ability to access capital for expansion, assumptions concerning future economic and competitive conditions, and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

CONTACT:  




SinoHub, Inc.


Susan Liu


Tel:   +86-755-2661-1080


Email: susan.liu@sinohub.com




HC International, Inc.


Ted Haberfield


Office (USA) 760.755.2716


Email: thaberfield@hcinternational.net

Source: SinoHub, Inc.
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