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Observation: Domestic Appliances Corps Mobile Swallow Small Profit

And TCL Communication in the first half loss of 853 million Hong Kong dollar is different

, TCL's color TV business outperformed the industry and continue to stay ahead.

Domestic mobile phone market at this stage, the deteriorating situation, how to restore consumer confidence is an important issue.

First half of 2005 earnings as the are announced, it was found, in fact, many domestic famous consumer electronics companies have been bleeding during the first half of this year.

Wings handset business enterprises


Recently, TCL Communication (2618.HK) released semi-annual report, called in the first half loss of 853 million Hong Kong dollars, compared to net profit of 302 million yuan a year earlier, mainly due to a huge loss mobile phone business, TCL Mobile Communication in the first half sales 1.906 million, compared with last year's 4.401 million or 57%. Which, TCL Mobile and T & A loss of 546 million yuan respectively, and 6.3 billion yuan, nearly 1.2 billion loss.

The mainstream with the domestic mobile phone makers Amoi Electronics (600 057) released first half of the report revealed that the first half of this year's loss of 57.57 million yuan. Loss is mainly due to too much dependence on the mobile phone business, but recent development of LCD TVs, laptops and other business, with well-developed, but not enough to reverse the cell phone industry, the loss trend of the Lord.

Konka published semi-annual report for 2005 shows a total of 1-June the company achieved sales revenues of 5.465 billion yuan, down 20.44%, net profit of 23.3484 million yuan, down 45.04 percent. One mobile phone business income of 888 million yuan of sales, down 57.35%, and loss.

In addition, Haier (1169.HK) revealed expected results for first half of 2005 as sales fell and the domestic mobile phone business mobile phone prices, and by the significant negative impact of the operating loss. Haier Electronics Group and its subsidiary company expects its ending June 30, 2005 6-month operating loss of phone service will appear.

Veteran TV business into the Saviour

It is noteworthy that, once the cash cow mobile phone business into a big loss is the main cause of loss, but then the TV business has been difficult in recent years with the rise of flat-panel TV market, as several electronic support this Group Savior veteran.

TCL's Center Daily News revealed that in the first half of multimedia e-business sales revenue of 15,178,613,400 yuan, up 114.64 percent, selling 9.78 million color TV sets, of which domestic sales of 4.14 million units, up 11%; overseas sales of 5.64 million units , up 165%; consolidated gross margin of 17.43%. And TCL mobile phones business over the same period is only 0.34% of the consolidated gross profit margin. TCL said its TV business was better than the industry and continue to stay ahead. The PRC, according to a report, the group in the first half of 2005 and the high-end CRT TVs LCD TV market share in the field increased to 10% and 18%.

Konka's color TV business in the first half to keep the growth momentum, a loss in the case of mobile phone business to maintain profitability Supporter Konka. Konka reported, according to the Chinese, first half of 2005, Konka TV completed 4.577 billion yuan sales income, essentially flat with the same period last year. But TV sales structure to further improve the reporting period, including LCD, plasma, digital products, including rear projection high-end product sales and the growing proportion of sales revenue. Konka TV's domestic market share continued to stay ahead. Konka Konka's mobile phone business in the proportion of total income has decreased from the original 26.8% to 15.5%.

Phone business once glorious

Just three years, the fate of domestic TV and mobile phones carried out on the dramatic reincarnation.

Look back three years ago, when the Chinese color TV industry into a corner, the Chinese consumer electronics giants are almost without exception, the "mobile business" as its "strategic restructuring" of the break points to explosive growth of mobile phone products to make up for TV and other traditional decline in the profitability of home appliances; TCL mobile phone business in 2002, TCL Mobile's profit subsidiary of the mythical 1.2 billion yuan, TCL Group contributions to the majority of the profit, the profit of a Konka 2003 billion, of which mobile phone business accounted for almost half of the contribution.


However, up to 2005 today, the domestic home appliance giant anti-by has become "core business" of the cell phone business to contain the phone with the loss of major companies also have eroded the traditional electronics industry brought modest profit.

Just three years, after transmigration, cell phone industry, launched, Chinese enterprises have been "short-sighted act," and "quick profit" exposure for sure. Have someone asks: Is all the household electrical appliance enterprises have the same as the year of Xiamen Overseas Chinese, and finally sold to Lenovo mobile phone business, and mobile business process summed up as "has gone through the tortuous path?"

Observation: Domestic Appliances Corps Mobile Swallow Small Profit

By: viedy
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