HTC 2007 Annual Report Download - page 12

INTRODUCTION
19
In June 2007, HTC unveiled the HTC Touch at
a press conference in London, England. This
innovative creation sparked global interest in
and demand for phones with touch screen
capabilities. Opening the way for the gradual
introduction of a whole new range of mobile
phones, the HTC brand name has now
become synonymous with trendsetting
converged device products.
HTC launched the revolutionary new HTC
Touch Diamond, its newest flagship line of
mobile phone products, in London in May
2008. Distilling a decade of planning, research
and development work, Touch Diamond
delivers unmatched innovation in a device that
packs a brilliantly simple, user-friendly
interface in an ultra-thin profile. The
streamlined, lightweight shell and smart look
were tailored to establish the line's
fashionable image as well as to hint at the
advanced precision technology contained
within. HTC Touch Diamond sets a new
industry benchmark for mobile Internet access
and convenience and integrates the
company's latest screen interface - TouchFLO
3D. A new touchstone in innovation and
design, HTC Touch Diamond challenges
consumers to take a fresh look at mobile
communications and make new demands on
their own mobile phones. A new era in
personal mobile communications has arrived.
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subsequently arranged visits to Europe's
largest telecommunications operators to
discuss an innovative new approach for the
industry—the development of customized
devices for the wireless communications
market.
In 2002, HTC broke new ground for the
industry by launching two new mobile wireless
devices, the O2 XDA and Orange SPV, in
partnership, respectively, with O2 (UK) and
Orange (France). The products, designed
around Microsoft's latest operating system,
helped telecommunications service providers
boost average revenue per user (ARPU) rates
and earned worldwide attention.
By integrating Internet, entertainment, video,
and personal data assistant functions onto a
handheld device offering high resolution and a
large, easy-to-read display panel, HTC
INTRODUCTIO N l HISTORY l
II
ushered in a new era in the history of
converged devices. Cell phones would no
longer be simple devices used to send and
receive voice and text communications; they
now offered information and entertainment on
the move—a platform over which to plug into
the world. It was at this stage that HTC began
actively working with customers to develop
test devices to help better understand the full
range of customer telecommunication service
needs. Results were fed into the development
of customized converged devices, which
formed the vanguard of HTC's strategic move
into the global telecommunications market
and its calculated creation of a supporting
sales and service network.
>L a un c h i ng a G l ob a l Br a nd S t r a t e gy
" HTC Tou c h " Sp a r k s Wor l dw i d e Tou c h Tr e nd
HTC announced the formal launch of the HTC
brand in the European market in June 2006,
and quarter-on-quarter growth has shown
steady and impressive results. In May 2007,
HTC's Board of Directors approved, pending
shareholder approval, the purchase of Dopod
International, a leading distributor of
converged devices in East Asia. At the same
time, HTC start releasing products carrying its
own brand. As the HTC brand strategy has
quickly taken wing and driven solid sales
growth, OEM sales have steadily fallen in
importance in terms of HTC's overall
business. At the end of 2007, OEM
manufacturing accounted for less than 10% of
HTC's overall corporate revenues.