Phone maker dials up its product line
TCL Communication Technology Holdings plans to roll out dozens of new mobile phone models and expand its global distribution reach this year as it attempts to hit a sales target of 50 million handsets.
The Shenzhen-based phone maker announced plans for 51 new products at the same time as a 56 per cent increase in first-half profits. It made HK$391.34 million, up from HK$250.17 million a year earlier, on the back of growth across all its global sales regions. Revenue rose 33 per cent to HK$4.6 billion from HK$3.45 billion the previous year.
'The group was able to sustain its growth momentum from last year,' TCL Communication chairman Li Dongsheng said in a filing with the Hong Kong stock exchange.
Li said the company improved its market penetration across the mainland, the Americas, Europe, the Middle East and the Asia-Pacific region by offering entry-level 3G handsets based on the Google-developed Android operating system.
TCL Communication - the handset manufacturing unit of mainland consumer electronics giant TCL, opened two new research-and-development centres in Ningbo, Zhejiang province, and Chengdu, Sichaun province, in the first half to accelerate design of mid-level to high-end smartphones and media tablets.
'Product diversification will continue to be one of the pillars in the group's long-term growth strategy,' Li said.
Market research firm IHS iSuppli forecast domestic manufacturers expects to ship 111 million smartphones annually across the mainland by 2015, more than double its estimated 54.1 million units this year.
Li said broader distribution initiatives and the opening of a new mainland manufacturing plant - with an annual capacity of up to 130 million units - would support TCL Communication's expansion efforts nationally and globally.
Despite its positive second-quarter results, the share price finished down 7.85 per cent to HK$5.87 - its lowest close since hitting HK$5.61 on June 23 this year.