(Or “The results of two smartphone manufacturers show where the margins are”}
A few weeks ago, a PAP apologist ranted in ST about the Lady visiting Europe, implying that she should have visited Asia because Asia was rising, Europe declining. I pointed out that if not for Europe, she would be dead. There is something as gratitude, a word that seems unknown to him and other PAPpies.
Well it seems she is pretty savvy too in economics. Asia is still so dependent on European (and America) growth. Even the nation-building, constructive ST tells us.
Here’s a great example not reported by the local media. Taiwanese smartphone maker HTC reported a 58% fall in net profit to 7.4bn Taiwanese dollars (US$248m) in the three months ending in June. Second quarter revenue of 91bn Taiwanese dollars was worse-than-expected.
This is why: HTC sells most of its phones in Asia’s developing economies at the lower, less profitable end of the market.
Contrast this with the news on the same day that Korean rival Samsung Electronics posted record second-quarter earnings largely due to the success of its Galaxy smartphone. The main markets for this are the US and to a certain extent, Europe. Asia is only a small market for this top-end smartphone.