TCL Communication reported that in the first quarter of 2012, a total of 7.8 million units of handsets and other products were sold, representing a decrease of 10% compared with the same period last year.
However, sales volume in overseas markets reached 6.5 million units, while sales volume in China was 1.3 million units, surged remarkably by 211% year-on-year.
In spite of weaker demand for feature phone, the enhanced product mix enables the products of the group with sustainable competitiveness. Accordingly, the average selling price ("ASP") improved from $31.3 to $34.6, and the total revenue therefore slightly decreased by only 1%, from HK$2.12 billion ($270 million) to HK$2.10 billion ($257 million). Overall gross profit margin decreased slightly from 22% recorded in the first quarter of 2011 to 20% in the first quarter of 2012 due to weakened market demand and keen competition in the handset industry.
During the first quarter of 2012, the group dedicated more resources to research and development, and significant breakthrough has been achieved in respect of smartphone validation. A series of smartphone models will commence shipment from Q2 2012 onwards.
During the period, selling and distribution costs also increased along with the increase in advertising and promotional activities, especially in China, and smartphone shipment in domestic market increased month by month as a result. However, the first quarter of 2012 was still a ramp-up period for smartphones; growth momentum for smartphones is expected to take off once the new smartphone models will be launched from the second quarter onwards.
Due to the influence of unstable political status in Africa and European debt crisis, shipments to Europe, the Middle East and Africa ("EMEA") region decreased by 26% year-on-year to 2.5 million units.
In the Asia Pacific region, the group’s sales volume reached 0.6 million units, increasing by 10% as compared with the first quarter of 2011. The group recorded remarkable performance in Indonesia, Vietnam, Israel and the Philippines, and the group’s low-end camera phone, the ONE TOUCH 318D, was the best seller in the APAC region.