HTC 2010 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2010 HTC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

28 2 0 1 0 H T C A N N U A L R E P O R T 29
Business Operations
expanding universe of mobile content and services.
Consumer demand for smartphones is fueling rapid
business growth. Globally, smartphone sales topped
300 million units in 2010 (IDC estimate) – an impressive
74% rise over 2009.
An early leader in Windows Mobile, HTC has expanded
aggressively into the Android platform to take full
advantage of rising demand for mobile digital services.
HTC launched the world's first Android mobile phone
in 2008. The company has also wholly transformed the
mobile phone design paradigm - demanding harmony
between hardware, aesthetics and user experience
in place of the prevalent industry focus on hardware
specifications. As such, HTC delivers a holistic user
experience to its users. HTC is also a 4G leader. Our
launch of the world's first Wimax Android and LTE
Android mobile phones once again confirms HTC's
leadership in the smartphone industry.
Led by rising demand, capacity utilization of upstream
components / parts suppliers started to increase from
the start of the 3rd quarter of 2010. Shortages of certain
items were evident. Apart from securing adequate
capacity from our suppliers, HTC also regularly
negotiates to reduce supply costs. During 2010, HTC
managed to obtain significant cost reductions on
medium and small panels despite tight supply situation.
The HTC supply chain is considered generally strong
and stable.
Continued growth in worldwide mobile phone deliveries
during 2011 is expected to lead to tight supplies of
upstream components. HTC will continue to demand
adequate capacity commitments from suppliers to
ensure on-time delivery of components. HTC will also
support suppliers to raise production eciencies and
lower costs to enhance mutual competitiveness.
Market Analysis
Exceptionally positive prospects for the smartphone
sector reflect rising consumer utilization of mobile
internet. Beyond traditional phone functions,
smartphones allow users to manage online social
networking, handle e-mails, access the internet and
tap into a variety of mobile applications. Smartphone
functions touch on nearly every facet of modern life.
Market growth continues to attract business attention
as well as new competitors eager to profit from new
opportunities.
Principal smartphone operating systems include
Symbian, Android, iOS, Blackberry and Windows
Mobile. Symbian remains the dominant player, although
its market share has been slipping. Android and iOS,
both commercially available for less than five years,
have earned loyal followings and achieved exceptional
market share growth on the strength of their extensive
software app oerings. Android's 22.7% of worldwide
smartphone sales in 2010 (Gartner estimate) gives the
Android OS a market share second only to Symbian.
HTC is the world's leading manufacturer of both
Android and Windows Mobile smartphones. Its leading
R&D, innovation and operations are further enhanced
by its many long-term strategic partnerships with
industry leaders that give HTC an active role in shaping
industry trends. Close cooperation with major telecom
service providers around the globe keeps HTC plugged
in to consumer preferences and emerging needs. HTC
shipped 24.67 million units and supplied 8% of the
global smartphone market in 2010. We rank amongst
the world's top 5 manufacturers of smartphones and
top 10 manufacturers of mobile phones. Going forward,
HTC will continue to leverage innovation and expertise
to satisfy diverse consumer needs and further bolster
HTC's brand awareness and value.