China's TCL 3-mth drop in handset sales on slow product launch - analyst
TCL Corp, one of China's largest television and mobile handset makers, said its domestic handset sales fell to 290,409 units in July, down from 560,043 units in the same month last year.
BEIJING (AFX) - TCL Corp's (SZA 000100) handset sales have fallen over the past three months due to delays in new product launches and a shift in the company's product line, an analyst said.
TCL Corp, one of China's largest television and mobile handset makers, said its domestic handset sales fell to 290,409 units in July, down from 560,043 units in the same month last year.
The slow launch of new products remains a major problem for the company, according to Wang Tao, an analyst with Beijing telecom research house BDA (China) Ltd.
He also said the market has yet to respond to the firm's new strategies on product lines.
Last month, TCL Communication Co (HK 2681), a subsidiary of TCL Corp, announced it would shift its strategic focus to producing high-end mobile handsets.
In contrast to the firm's dwindling domestic sales, TCL's overseas July handset sales more than tripled to 380,797 units, up from 101,268 units in July 2004.
This was largely due to TCL's partnership with French telecommunications firm Alcatel, according to Wang.
'By using Alcatel SA's brand and sales channels in Europe, it is not surprising to see exports expanding,' he said.
TCL Communication and Alcatel SA established their handset venture -- TCL & Alcatel Mobile Phones Ltd (TAMP) -- in August 2004.
In May, TCL Communication bought back Alcatel SA's 45 pct stake in TAMP, turning it into a wholly-owned subsidiary.
Wang added that the decline in domestic handset sales could adversely effect the firm's performance.
'As the new profit making division for TCL Corp, the drop in (domestic) handset sales might affect the whole company's performance,' Wang said.
TCL Corp, one of China's largest television and mobile handset makers, said its domestic handset sales fell to 290,409 units in July, down from 560,043 units in the same month last year.
The slow launch of new products remains a major problem for the company, according to Wang Tao, an analyst with Beijing telecom research house BDA (China) Ltd.
He also said the market has yet to respond to the firm's new strategies on product lines.
Last month, TCL Communication Co (HK 2681), a subsidiary of TCL Corp, announced it would shift its strategic focus to producing high-end mobile handsets.
In contrast to the firm's dwindling domestic sales, TCL's overseas July handset sales more than tripled to 380,797 units, up from 101,268 units in July 2004.
This was largely due to TCL's partnership with French telecommunications firm Alcatel, according to Wang.
'By using Alcatel SA's brand and sales channels in Europe, it is not surprising to see exports expanding,' he said.
TCL Communication and Alcatel SA established their handset venture -- TCL & Alcatel Mobile Phones Ltd (TAMP) -- in August 2004.
In May, TCL Communication bought back Alcatel SA's 45 pct stake in TAMP, turning it into a wholly-owned subsidiary.
Wang added that the decline in domestic handset sales could adversely effect the firm's performance.
'As the new profit making division for TCL Corp, the drop in (domestic) handset sales might affect the whole company's performance,' Wang said.
