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HTC expects to meet 2 million sales target early

By Lisa Wang and Elizabeth Tchii
STAFF REPORTERS
Tuesday, Aug 05, 2008, Page 12

High Tech Computer Corp (HTC, 宏達電), the world’s biggest maker of mobile phones running Microsoft Corp’s system, expects to make its 2 million-unit sales goal for the latest Diamond series ahead of its year-end schedule because of stronger-than-expected demand, a company executive said yesterday.

The Taoyuan-based company’s comments came in the wake of speculation that the introduction of Apple Inc’s second-generation iPhone would do serious harm to sales of HTC’s new Diamond phones.

“The sell-through of Diamond phones is very good. Demand is quite strong,” HTC chief executive Peter Chou (周永明) told reporters. “The launch of iPhone has not hurt our sales as some thought.”

Sales of Diamond family phones are expected to exceed 1 million units by the end of this month, just three months after the launch in late May with European operator Orange, making the Diamond phone HTC’s best-selling handset, Chou said.

As demand was stronger than expected — primarily in Europe and Asia — the company’s production was unable to match demand, Chou said.

Because of the robust demand, Chou said: “It is not a problem for us to sell more than 2 million [Diamond phones] by the end of the year. We can reach the goal ahead of [schedule].”

HTC planned to launch four or five new products in the Diamond series during the remainder of the year, Chou said.

The company would also stick with its original plan of shipping the first handset running the Android system — an open-platform supported primarily by Internet search giant Google Inc, to customers during the Christmas shopping season, he said.

In Taiwan, HTC has found a new strategic partner — Taiwan Mobile Co (台灣大哥大), the second-largest local telecom operator. HTC has been supplying tailor-made handsets to Chunghwa Telecom Co (中華電信), the nation’s top phone company, over the past years.

Under the partnership, Taiwan Mobile subscribers will be able to get a free Touch Diamond P3702 phone with a two-year contract on a minimal monthly charge of NT$2,490.

The Touch Diamond P3702 weighs only 98g and is equipped with a top-of-the-line 2.8-inch VGA touch screen, 4GB memory (235MB ROM and 192MB RAM), and runs on Windows Mobile 6.1 platform.

“The display resolution, smart dial feature, user friendliness and 3.5G capability make it a more attractive alternative than Apple’s iPhone,” Chou said.

Customers can take advantage of the deal from Aug. 15 at various “myfone” retail locations. The two bundled services available include basic monthly fees plus BlackBerry 990 or catch smart 399 data plans.

Vivian Chuang, director of the loyalty and value-added services marketing division at Taiwan Mobile, described the company’s typical smart phone users as “business customers” aged 30 to 49 who have strong dependency on cellphone coverage and up-to-the-minute information.

These customers are likely to be businessmen, professionals, entrepreneurs or management personnel at various corporations who use e-mail and MSN extensively. This particular client segment accounts for 20 percent market share at Taiwan Mobile, Chuang said.


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