Mainland handset manufacturer will continue to focus on the low-end market
TCL Communication Technology Holdings, a mainland mobile handset manufacturer, expects its business to break even this year as it adopts a cautious expansion approach after suffering a HK$1.6 billion loss last year.
The company, a unit of Shenzhen-listed TCL Corp, said second-quarter profit was HK$6 million, compared with a HK$77 million loss in the first quarter.
TCL Communication cut its sales forecast to 13 million units this year from 14 million it made a quarter ago as it wants to avoid price competition with international brands such as Nokia and Motorola in the overseas markets.
'I feel very comfortable in maintaining a low market share at present rather than expanding at a big loss like Siemens and BenQ or taking a heavy financial burden in Europe like [Ningbo] Bird and Sagem,' said Liu Fei, chief executive of TCL Communication.
The firm will continue to focus on the low-end market where Siemens and BenQ are major rivals, and will launch a new range of MP3 handsets to boost profitability.