By
Telecom Lead Team: Taiwan smartphone maker HTC has reported 67.09 percent
increase in 2011 revenue at NT$465.79 billion against NT$278.76 billion in
2010.
For
the full year of 2011, the company’s profit grew to NT$61.98 billion, up 56.77
percent year-on-year. The company’s overall gross profits and operating margins
were 28.30 percent and 14.77 percent, respectively.
HTC‘s fourth
quarter revenue stood at NT$101.42 billion. It reported a 26 percent drop in
profits, which stood at 10.9 billion New Taiwan dollars ($370 billion).
HTC’s
fourth quarter gross profit and operating margins came in at 27.12 percent and
12.71 percent, respectively. The company said that the decline in gross profit
margin was mainly a result of product transition.
In
2011 we saw growth in the global strength of our brand, as well as earnings and
revenue growth. While short term performance may not meet the results as
expected, we have gained further experience and advancement in the areas of
brand management and product innovation. These fundamental strengths and the
groundwork we have laid will take us into 2012 with a renewed focus and
determination,” said Peter Chou, CEO of HTC.
HTC
predicted its revenue will drop further to NTT$70 billion in the first quarter
this year but will return to normal in the second quarter with the introduction
of several new models.
The
company said that it has grown on the strength of the design of its handsets,
based on Google’s Android operating system. HTC added up to 1,000 engineers
last year to its research and development team to build products.
HTC
is facing stiff competition from its top rival, South Korea’s Samsung, while
the global economic downturn has hit sales in its two main markets, the U.S.
and Europe.
In
2012, HTC will focus on growing its brand value and work at a global level to
build emotional connections with consumers, putting more of its marketing resources
behind fewer products and driving value in those product brands.
It
aims to optimize its go-to-market strategy with operators, retail distributors,
and end-users, and improve the efficiency of its marketing spend by building a
globalized marketing campaign.
In
emerging markets, such as China, HTC will continue to extend its reach to
customers by expanding distribution channels, the company added.
Despite temporary weakness resulting from product cycle transition, the company
said that it has the ability to create a new wave of momentum through the
upcoming product cycle.
Recently, HTC unveiled its new HTC TITAN II as the company’s first Windows Phone to
run on a 4G LTE network at the 2012 CES.
