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VTech Holdings Ltd
Annual Report 2007 9
consumers and enabled VTech to win
more shelf space from retail customers.
To recognise VTech’s innovative ideas,
products and pricing in growing
Wal-Mart’s business, we were given the
“Supplier of Excellence Award” for the
fourth quarter of 2006 in the Consumer
Electronics category in February 2007.
In Europe, as mentioned in the interim
report, the market had suffered from
excess inventory, a situation that
affected all suppliers. As a result,
despite a pick up of sales in the second
half over the fi rst half, sales to the
region for the fi nancial year 2007
declined 25.1% over the fi nancial year
2006 to US$126.2 million, accounting
for 19.1% of total TEL revenue.
To ensure growth momentum is
maintained, throughout the fi nancial
year, we continued to invest in the
development of new products and
a number of exciting models were
unveiled at the Consumer Electronics
Show (CES) in Las Vegas in January
2007, where our focus was on
innovative design and new technology.
Our design capabilities saw the
unveiling of the Digital Enhanced
Cordless Telecommunications (DECT)
6.0 system. Featuring a uniquely thin,
compact form factor, these phones
deliver a superior level of interference-
free clarity, quality, security and range
in a cutting-edge design.
Building on its tradition of pioneering
technology, VTech rounded out its
Internet enabled and Bluetooth enabled
phones. The new Internet enabled
phone, infoPhone™ combines standard
telephony, peer-to-peer VoIP calling and
personalised content delivery in a sleek
design. It allows users to check e-mail
and Internet delivered content such as
news, sports, weather and horoscopes
through the cordless handset, without
the need to turn on a computer.
Recognising the increased penetration
of Bluetooth enabled cellular phones,
we also introduced an AT&T cordless
phone with Bluetooth connectivity
at affordable price point. It has been
available since May 2007.
0
100
200
300
400
500
600
700
800
US$ million
TEL REVENUE IN LAST 5 YEARS
609.8
03
687.2
04
612.5
05
594.7
06
660.6
07 The Internet enabled phone, infoPhone™ combines standard
telephony, peer-to-peer VoIP calling and personalised content delivery
The US TEL
business was given
the “Supplier of
Excellence Award”
for the fourth
quarter of 2006 by
Wal-Mart.
05VtechReviewofOperations(E)99 2007/7/511:39:00PM