HTC 2010 Annual Report Download - page 5

82 0 1 0 H T C A N N U A L R E P O R T 9
Letter To Htc Sharehol ders
CEO & President
smartphones. The lineup included the HTC 7 Surround,
HTC 7 Mozart, HTC 7 Trophy, HTC 7 Pro and HTC HD7.
HTC Sense is HTC's self-developed user experience that
integrates a suite of multimedia and location based
services. The exciting new app "Locations" lets users
preload maps into their HTC devices for "no wait"
navigation assistance. HTCSense.com, launched in 2010,
is a new series of connected services that allows HTC
users to manage device information and settings such
as contacts, text messages and call history remotely
through a mobile phone or personal computer.
The global "Quietly Brilliant" campaign has steadily
expanded brand recognition of HTC and its products.
The 2009 "YOU" campaign highlighted HTC's customer-
centered approach to business. This year's "Here's
an Idea" campaign further highlighted the unique
user experience delivered by HTC innovation.
Increased marketing at HTC sales outlets
worldwide (e.g., HTC phone and HTC
Sense "test drive" promotions) have
further solidified the HTC brand.
By the close of 2010, global
recognition of the HTC
brand had risen to 50% – an
accomplishment that led T3
magazine to proclaim HTC
its "Tech Brand of the Year".
All these highlight our
achievements in developing
and promoting the HTC
brand in 2010.
HTC Corporation
Chairman Cher Wang
CEO & President Peter Chou
In addition, HTC introduced its brand in China
in 2010 and expanded positions in emerging
markets such as China and Southeast Asia.
HTC continues to beef up its product portfolio
to address diversified market demand. Recent
examples include launches of HTC Flyer – HTC's
first tablet PC, HTC Sensation – our premium
multimedia super phone, HTC EVO 3D – our first
"glasses-free" 3D phone, and HTC Salsa and HTC
ChaCha – two smartphone models optimized for
mobile social networking. The diverse functions
and features of HTC products put users in charge
and will continue to electrify and expand the
mobile experience.
Financial Performance
HTC's growth model has kept the company highly
profitable as it expands. Consolidated revenues
rose 93% during 2010, reaching a historic high
of NT$278.8 billion. Consolidated gross margin
was 30.1% and consolidated operating expense
ratio was 14.3%. Consolidated operating margin
reached 15.8%. These numbers attest to our
eorts in enhancing operational eciency. Net
income after tax was NT$39.5 billion, an NT$16.9
billion increase over 2009. Net margin (after tax)
was 14.2%, and earnings per share (EPS) was
NT$48.49.
The Future
HTC anticipates continued growth in the
smartphone sector. The convenience and
excitement delivered by the plethora of mobile
digital applications available such as location
based services, multimedia entertainment, social
networking services, and e-books continue to
push smartphones to the fore of mobile phone
purchase choices and increase penetration of
smartphones in the mobile phone market.
Work continues on HTC's new Taipei
Headquarters building in the Taipei suburb of
Xindian. HTC further expanded its Taoyuan
headquarters and Kangqiao production facility
in Shanghai for future growth. In 2010, HTC
acquired the successful software customization
house, Abaxia, to broaden and deepen our
capability in software development and
integrated cloud computing capabilities to oer
a comprehensive range of connected services.
HTC is meeting intense competition head-on
with superior innovation and a brand that fits
snugly with modern consumer lifestyles and
desires. We listen closely to our markets to refine
products and services. In building an exceptional
reputation for the HTC brand, we are expanding
and deepening our abilities to share the fruits
of our accomplishments with HTC shareholders,
customers, and employees.