HTC 2008 Annual Report Download - page 22

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38 39
full suite of powerful functions and the latest technologies.
HTC Magic is the most recent example of how HTC infuses
style and depth into mobile phone products and
applications.
HTC, working to establish a consistent value and image for
its brand worldwide, has focused on promoting simple,
clear messages aimed at earning global consumer
endorsement and enthusiasm in order to extend and
deepen the commercial value of innovative efforts. The fact
that ODM sales contributed to less than 10% of total HTC
revenues in 2008 shows that HTC's global brand strategy
is achieving a certain measure of success. Under the
banner of the HTC brand, the corporation will continue to
develop a single global business strategy honed to
highlight the image and value of the HTC brand and create
a premier international brand that will sustain and extend
the corporation's long-term competitiveness.
G. Progress in Research & Development
Since its inception, HTC has invested consistently to
nurture in-house R&D capabilities and develop innovative
technologies. Today, R&D professionals account for nearly
one-third of all HTC personnel, and annual R&D
investments regularly represent 6~7% of total revenues.
HTC products are frequent trailblazers, earning a long line
of 'firsts', including that for the design and production of
Microsoft's first smart phone and for Microsoft's first 3G
smart phone and PDA phone. The HTC Touch Diamond,
launched in 2008, represents yet another important first -
integrating fashion, leading edge telecommunications and
an exceptionally user-friendly interface into one, thoroughly
innovative smart phone.
After joining the Open Handset Alliance, HTC, in
September 2008, announced the launch of the world's first
Android-based mobile phone, the T-Mobile G1. The
T-Mobile G1 underscores HTC capabilities and leadership
in innovative design and development in the mobile
telecommunications sector. The T-Mobile G1 adds a line of
smart phones positioned to lead the way into the age of the
'anywhere, anytime' Internet to HTC's main product lineup
based around the highly versatile and successful Windows
Mobile platform. In the arena of wireless Internet
applications, HTC joined in November 2008 with Russian
telecom services operator SCARTEL to launch the world's
first dual mode GSM/WiMAX mobile phone - the HTC Max
4G. The HTC Max 4G blazes a trail for others to follow in
terms of its integration and support of new generation
mobile Internet services.
Dedication to continued enhancement of innovation,
aesthetics and functionality in product designs directed
HTC's decision to approve the purchase of San Francisco
(USA)-based One & Company Design, Inc. by its
subsidiary H.T.C. (B.V.I.) Corp. The acquisition gives
substance to HTC commitments to put consumer
convenience and preferences in the 'driver's seat' of
design, innovation and production efforts. The combination
of HTC and One & Company creates a world-class design
team, embracing top technology innovators and design
professionals, able to enhance HTC core design strengths
and open the door for HTC to participate in the design of a
wide array of general consumer products. Already a leader
in wireless communication technology, this team is well
positioned to mature into the world's most advanced mobile
phone design and innovation team able to deliver to
consumers and telecom operators exceptionally designed
and highly innovative products.
Building on its strong track record of innovative success, HTC
will continue to launch leading edge, new generation
products. The corporation will continue to build its converged
phones on Windows Mobile and Android platforms. Apart
from enhancing 3G wireless data transfer rates, HTC is
making progress on developing TD-SCDMA broadband
integrated technologies. HTC is also 'breaking the mold' in
terms of device appearance and functionality, proving that
smart phones can be streamlined and stylish while delivering
telecommunications results at the leading edge of technology.
HTC products will further focus on serving the needs of the
general consumer market in order to ensure advanced
multimedia and mobile internet services are accessible to as
many people as possible.
R&D Expenditures in Recent Years and To Date:
NT$ millions
Item 2007 2008(note) 2009Q1(note)
R& D Expenses 3,866 9,618 2,080
As a Percentage of Total Revenue 3.3% 6.3% 6.6%
Note: Included employee bonus expenses
2O O 8 HTC AN N UAL REPO RT
III. Business O perations