HTC to ship CDMA handset to Reliance directly, say sources

Accelerating its expansion in emerging markets, High Tech Computer (HTC) recently received CDMA handset orders from Indian telecom carrier Reliance with shipments expected to kick off in the first quarter, according to market sources.

HTC has shipped GSM/GPRS based handsets to Bharti Airtel and the company will ship CDMA handset to Reliance directly, the sources noted. In the past, the company sold CDMA-based handsets to Reliance in India through its partner UTStarcom. With HTC now building its own-brand business in India, Reliance decided to buy products from HTC directly, the sources added.

However, HTC now is still partnering with UTStarcom on shipping products to Verizon in the US market.

HTC's sales in India have beat expectations, said Jack Tong, vice president of HTC, Asia Pacific. The company plans to expand its channel distributors to cover more than 20 cities. The sales team of HTC in India will also double to 20 staff this year, Tong stated.

HTC currently ships CDMA handsets in Australia, New Zealand, Vietnam and Thailand, indicated Tong. However, telecom carriers in Australia and India have changed their platform to GSM or WCDMA from CDMA. This will affect the sales of CDMA handset in those markets.

Although HTC is targeting the mid-range and high-end market, the company is also revising its strategy for emerging markets. For example, Dopod China, which has a strong connection with High Tech Computer (HTC), has launched a sub-2,000 yuan (US$277) smartphone (Gene) in China. Accumulated shipments of the model are expected to reach more than 300,000 units in 2008, up from 200,000 in 2007. The company also began offering the model in India in the fourth quarter of 2007.

Dopod China will soon begin to introduce low-cost CDMA handsets under the new brand vivie in China in cooperation with China-based telecom service provider China Unicom, according to market sources and media reports in China. Tong, however, stressed that the company has no plan to launch such products in India.

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