Wednesday, October 31, 2007
HTC 3Q 2007 margins climb to 37.9%
Posted by Nurhisham Hussein in "NEWS" @ 05:00 AM
"High Tech Computer (HTC) saw its gross margin hit a record high of 37.9% in the third quarter of 2007 on an improved product mix and declining ODM business, according to company CFO Hui-ming Cheng. A higher than 30% on-year growth in non-ODM business and the launch of the HTC Touch and other PDA phones in the third quarter helped push up the gross margin, Cheng detailed. Looking forward, revenues from non-ODM business are expected to grow another 40% on year in the fourth quarter, with the proportion of non-ODM business to account for over 90% of HTC total revenues, Cheng estimated."
This makes a pretty big change from late last year. As consumers, we rarely see (or care) what happens to the companies that make our devices - in this instance it's clear that the Windows Mobile community has increased and voted with our collective wallets these past few months. I know for certain that I see far more people on the street pecking with styluses and fingers than I ever used to - the "smartphone" is here to stay, and Windows Mobile is and remains a big part of that market. It's clear that HTC has largely validated their shift in strategy from a pure ODM vendor, to one that can successfully compete in the crowded retail space on its own merits. Going from a 100% ODM-driven business to 90% non-ODM in under two years takes some doing...and a lot of courage. In hindsight, I'm kicking myself for not trying harder to pick up some of their stock when it was tanking 9 months ago. :wink:
This makes a pretty big change from late last year. As consumers, we rarely see (or care) what happens to the companies that make our devices - in this instance it's clear that the Windows Mobile community has increased and voted with our collective wallets these past few months. I know for certain that I see far more people on the street pecking with styluses and fingers than I ever used to - the "smartphone" is here to stay, and Windows Mobile is and remains a big part of that market. It's clear that HTC has largely validated their shift in strategy from a pure ODM vendor, to one that can successfully compete in the crowded retail space on its own merits. Going from a 100% ODM-driven business to 90% non-ODM in under two years takes some doing...and a lot of courage. In hindsight, I'm kicking myself for not trying harder to pick up some of their stock when it was tanking 9 months ago. :wink:
