TCL Newsletter predicts a quarterly turnaround

TCL Communications (02618.HK) said yesterday that the first three months of this year were expected to benefit from losses due to the correct direction of the product transition strategy, sales growth and operational efficiency.

The announcement showed that sales of smart terminals accounted for 17% of total sales from the same period in 2013, to 46%. Mobile phones and other products of the total sales volume of 13.6 million units, an increase of 60%, the number of intelligent terminal sales of 6.3 million units, the year-on-year jump of 334%. The report points to continuous optimization of product portfolios through the introduction of more high-end smartphones in different series. The average sales price, turnover and gross profit margin of TCL communication products continued to rise compared with the same period in 2013.

TCL Communications, which had faded out of sight of Chinese consumers, last year began to return to China, the world's largest smartphone market, in search of a profit breakthrough. In order to quickly adapt to the local mobile phone market competition rhythm, TCL communication set up a composite sales channels: operators channels, electric business channels, social channels at the same time to expand.

"Tcl has the ability to operate, product capabilities, in China is the most lack of channels and brands." "Prior to this, Tcl Communications coo Wang," The first financial daily reporter said, on the one hand, through the establishment of provincial branch, the social channel to stabilize, on the other hand will focus on the electric business channels, and the use of the group's advantages to promote TCL mobile phone brand.

In the past two years, TCL mobile phones launched HeroN3, idolx+ and other products, and released the "Mody" phone. According to TCL mobile phone official statistics, in suning easy to buy and China Mobile phone mall to participate in the second round of bookings are currently close to 7 million, refreshing the first round of more than 6 million of the appointment volume.