TCL heads back to black in 1H
Chinese handset vendor TCL Communications has returned to the black after sales – mostly to offshore developing markets – skyrocketed in the first half.
The mainland Chinese company boosted revenue 160% to HK$3.45 billion (€348 million) after shipping 14.23 million devices, a 181% increase over last year.
Net earnings of HK$250 million overturned a HK$104 million loss in 2009, and gross margin was up six percentage points at 21%, despite average selling price falling from $34 to $31.
Exports accounted for 91% of shipments, with the company selling 6.9 million units in the Americas and 5 million in EMEA.
CEO Guo Aiping said the turnaround was a result of the economic recovery and was also “a validation of our sales strategy and product development efforts.”
“We have also worked hard to move up the value chain by selling more TCL and Alcatel-branded handsets and by coming up with original designs for products that we white-label,” he added.
“Our brand is just going to get more valuable in the future, and customers will associate us with cutting edge but competitively priced products.”
Guo said the TCL-Alcatel brand had been ranked among the top ten global brands in terms of handset shipments in the first quarter of 2010 by iSuppli.
TCL acquired the Alcatel handset business from the French vendor eight years ago.