HTC 2007 Annual Report Download - page 7

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I
LETTER TO SHAREHOLDERS
89
Dear HTC Shareholders,
Your support and confidence in HTC (High Tech
Computer Corp.) over the past year has been
essential to our continued growth and success. We
are confident the new records for sales and
operations set in 2007 have set the stage for even
better yet to come.
HTC sales growth last year reflected strong global
demand for converged devices. This demand is
fueled by new advances in wireless communications
and related technologies that are delivering mobile
phones with thinner profiles and increasingly user-
friendly interfaces at prices well within reach of mass
market consumers. Conditions are right for wireless
customers in all major markets to begin migrating
away from traditional mobile phones and toward new
generation converged devices. The steady rollout by
telecom service providers of new and innovative
services to address intense competition for revenues
has also played an important part in demand growth
for progressively more powerful and sophisticated
converged devices.
Long-term commitment to technological innovation
and product development helped HTC secure new
business and break sales and operations records
last year. Our analysis sees continued strong growth
in demand for smartphones through this year
despite poor overall global economic conditions. Not
only should growth in Europe and other markets
continue, growth rates for smartphone products
should exceed that for traditional mobile phones.
2007 marked HTC's 10th year in business and the
global launch mid-year of HTC's own brand. We look
to the HTC brand, tailored to establish a single,
universal value and image for the company
worldwide, to grow into a leading global brand and
become a rallying point for consumer confidence
and identification. The HTC brand will extend the
value of ongoing product innovation efforts and set
the stage for enhanced competitiveness into the
future.
The power of HTC branding was driven home with
the company's HTC Touch line of products, which
sold its 3 millionth units just 11 months after it was
launched. The success of HTC Touch also showed
the company's leap into the global consumer market
was beginning to bear fruit and that its global brand
strategy was working. During 4Q 2007, original
device manufacturer (ODM) orders accounted for
less than one-tenth of products shipped.
A sharpened competitive edge, honed through 2007,
gives us confidence for the future. We will continue
our strong R&D programs, dedication to exceptional
quality and service, commitment to reinforcing and
deepening expertise in core business areas, and
drive to enhance competitiveness in order to see
HTC products sold successfully throughout the
world. We look forward to a second decade of
innovative research and brand development, to
continuing valued partnerships with partners around
the world and to creating for HTC products a secure
and valued role in consumers' lives.
LETTER TO SH A REH O LDERS
CEO & President Chairman