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VTech Holdings Ltd Annual Report 2008 9
We continue
to employ new
technologies to
make our phones
even better
Revenue for the  nancial year 2008 at the TEL business rose
4.1% over the previous  nancial year to US$688.0 million. The
business accounted for 44.3% of Group revenue, against 45.1%
in the previous  nancial year.
In contrast to the  nancial year 2007, growth was mainly driven
by increased sales to Europe, Asia Paci c and other emerging
markets, where we mainly operate an ODM business.
Sales to Europe grew by 42.9% to US$180.3 million, representing
26.2% of the total TEL revenue. Growth was mainly buoyed
by increasing sales to existing customers as we were able
to o er them more price competitive products through our
new technology platform. Sales to the Asia Paci c and other
emerging markets also rose by 126.1% and 32.3% respectively,
with notable sales growth from Australia, Brazil and India.
Adding to our ODM business, in December 2007, we entered
into a joint venture with Funkwerk Enterprise Communications
GmbH (FEC), a leading supplier of network and communications
solutions based in Germany. Under the joint venture
arrangement, FEC will provide the expertise and software
platform for the development of integrated access devices,
whereas VTech will be responsible for hardware design and
manufacturing. The  rst shipment is expected in the  nal
quarter of the  nancial year 2009.
Sales to North America, where we operate a branded business,
declined by 7.3% to US$476.8 million. Although sales to Canada
increased markedly owing to expanded distribution channels,
this could not o set the sales decline in the United States where
customers reduced inventory in anticipation of an economic
slowdown. During the  nancial year 2008, North America
represented 69.3% of total TEL revenue.
LS6117
Users can
personalise their
phone – as often
as they like
Always a Pioneer
We have an excellent track
record of industry “ rsts”
Comfort and
leading-edge
industrial design
are the hallmarks
of our products
AT&T TL7610
A DECT 6.0
cordless headset
for o ce
Despite the US slowdown, VTech continued to outperform
the competition, gain market share and maintain its number
one position, combining the market shares of the VTech and
AT&T brands, in the US cordless phone market. To strengthen
our leadership position in design and technology innovations
further, we launched many groundbreaking new products in
early 2008.
On the technology side, VTech added to its track record of
industry “ rsts” by introducing a cordless phone with instant
messaging capability, the IS6110, which features an extra-large,
high-resolution colour LCD and a full Qwerty keyboard.
The new AT&T DECT 6.0 series, meanwhile, brought to the
market phones that deliver the best range and voice clarity
using a proprietary antenna technology.
In cutting edge design, we extended the popular V.Mix range
through the launch of the LS6117 DECT 6.0 cordless phone,
which allows users to customise handsets with their own
graphics. Our new V.Style series also created a new trend and
standard in stores, o ering high-end industrial design cordless
telephones to consumers.