Chinese smartphone maker Coolpad Group goes all out in 4G push
Leading smartphone maker to focus all its research resources on new generation devices to take on competition from domestic rivals
Coolpad Group, a leading smartphone supplier, is looking to ratchet up its 4G-related investments amid fierce competition from other domestic brands and slowing demand for 3G devices on the mainland.
Guo Deying, the chairman and chief executive of Coolpad, said in a Hong Kong regulatory filing yesterday the company would focus all its research and development resources on 4G smartphones and relevant mobile applications.
Shenzhen-based Coolpad reported a 47.1 per cent increase in net profit to HK$512.8 million last year from HK$348.5 million in 2013, on the back of strong sales on the mainland, the world's biggest market for smartphones.
Gross profit margin, however, decreased to 12.1 per cent from 12.9 per cent because of increased market competition in the second half and subsidy cuts on smartphones by the country's three telecommunications network operators: China Mobile, China Unicom and China Telecom Corp.
Revenue grew 27 per cent to HK$24.9 billion from HK$19.6 billion as the firm sold about 40 million 4G and 3G smartphones.
Sales of 4G smartphones rose 2,300 per cent to HK$12.3 billion from HK$513.8 million, on the back of China Mobile's aggressive nationwide 4G network services expansion.
Sales of 3G handsets dropped 35 per cent to HK$12.2 billion from HK$18.9 billion.