High Tech Computer Corp (HTC,
Thirty-four companies, including Google, HTC and handset chipmaker Qualcomm Inc, formed the Open Handset Alliance, which aims to develop technologies that will significantly lower the cost of developing and distributing mobile devices and services, the companies said in a joint statement.
The commonly shared platform -- called Android -- is the first step in this direction, they said. HTC said it expects to launch the first mobile phones running on the Android system in the second half of next year.
"We believe the Gphone will be one of the products using the new platform," said Jonathan Liao (
HTC is in intensive talks with Google about supplying phones featuring Google's services, such as Google Map and Internet browsing, by the end of next year, Liao said.
The Taoyuan-based company could get an order of 1 million units a year from Google, Liao said.
"Our participation in the Open Handset Alliance and adoption of the Android platform in the second half of 2008 will enable us to expand our device portfolio into a new category," HTC chief executive Peter Chou (
HTC mainly manufactures mobile phones operating on Microsoft's system. Sales of handsets running on the new Android platform will help the company expand into a new area -- phones operating on the Linux system.
The news, announced before the opening of the local stock market yesterday, failed to lift HTC's stock yesterday. Shares of the handset maker slid 1.27 percent to NT$622, compared with the benchmark index's 0.17 percent loss.
"Investors have factored in the potential order from Google. And we do not think the order will contribute significantly to [HTC's bottom line] as the gross margin may be much lower than that of its existing products," Liao said.
Investors were also concerned about earnings erosion with the implementation of the new employee bonus rule next year, Liao said.
The additional spending could take 20 percent off HTC's net profit next year, which will significantly cap its growth outlook or even result in flat earnings next year, he said.
HTC told investors last week that it would not finalize the outlay until the first quarter of next year, but that spending was likely to be capped at 25 percent of its earnings.
HTC yesterday also reported record-high revenues last month. Revenues grew more than 24 percent to NT$13.1 billion (US$405 million) last month from NT$10.5 billion in September, which also beat consensus expectations of NT$12 billion.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS