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A Report On

Survey On Customers Satisfaction of HTC Mobile

B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION Surat. F.Y.B.B.A. SEM II

SUB:

Financial Accounting SUBMITTED BY:

Modi Jay C. Pachchigar Devanshi R. Patel Ami B. Patel Ekta P. Patel Jinal K. Patel Nitesh

- 140 - 144 - 150 - 153 - 154 - 164

UNDER GUIDANCE OF
Miss. Kajal Mam SUBMITTED ON: 24th March, 2011

..COMPANYS PROFILE..

Type Industry Founded Headquarters Area served Key people Products Revenue
Operating income

Public (TWSE: 2498) Telecommunications 1997 Taoyuan, Taiwan, R.O.C Worldwide Wang, Chairwoman Peter Chou, CEO and President Fred Liu, COO Smartphones $9.57 billion USD (2010) $1.544 billion USD (2010) $1.357 billion USD (2010) $6.535 billion USD (2010) $2.565 billion USD (2010) 5,569

Net income Total assets Total equity Employees

.History....
Introduction:HTC is one of the leading manufacturers of PDAs and smart phones around the world. It is one of the fastest growing companies in the world and maximizing its market share rapidly. HTC Corp, produces powerful handsets that continually push the boundaries of innovation to provide true mobile freedom. HTC was founded in 1997 by Cher Wang and Peter Chou. Initially a manufacturer of notebook computers, HTC began designing some of the world's first touch and wireless hand-held devices in 1998. The company has a rich heritage of many "firsts", including creating the first Microsoft-powered smartphone (2002) and the first Microsoft 3G phone (2005).[5] Their first major product was made in 2000 and was one of the world's first touch screen smartphones. The Palm Treo 650 and the iPAQ were created by HTC.[7] They started producing 3G-capable phones in early 2005 and made the world's first Android phone in 2008, the HTC Dream (also marketed as the T-Mobile G1). It was first released in the United States for pre-order through T-Mobile USA on September 23, 2008, and became available in U.S. T-Mobile stores on October 22, 2008.[8] The G1 was available in the UK several days after its USA launch, and has since been introduced in many countries including Australia and Singapore. In 2009, the company launched the HTC Sense interface for the platform with the HTC Hero. In March 2010, Apple Inc. filed a complaint with the US International Trade Commission claiming infringement of 20 of its patents covering aspects of the iPhone user interface and hardware.[10] HTC disagreed with Apple's actions and reiterated its commitment to creating innovative smartphones. HTC also filed a complaint against Apple for infringing on 5 of its patents and sought to ban Apple products imported

into the US from manufacturing facilities in Asia. Apple expanded its original complaint by adding two more patents. In June 2010, the company launched the HTC Evo 4G, the first 4G-capable phone in the United States. In July 2010, HTC announced it would begin selling Smartphones in China under its own brand name in a partnership with China Mobile.[16] In 2010, HTC sold over 24.6 million handsets, up 111% over 2009. HTC was named the "Device Manufacturer of the Year" for 2011 by the GSMA at the Mobile World Congress on 16 February 2011 HTC is one of the fastest-growing companies in the mobile sector and has achieved remarkable recognition over the past couple of years. Business Week ranked HTC as the second best performing technology company in Asia in 2007 as well as giving the company the number 3 spot in its Global listing in 2006. Since launching its own brand 18 months ago the company has introduced dozens of HTCbranded products around the world.

Worlds First in Adopting New Technologies

First to use Intel StrongArm processor, LTPS LCD, and lithium polymer battery (1999) First to use TI OMAP and Samsung ARM 9 (2002) First to use Intel Bulverde 520 MHz (2004) First to combine Blackberry and Windows Mobile OS together(2005) Continuous first to deliver Windows Mobile devices.

Worlds First in Product Innovation

First Microsoft color Pocket PC (2000) First Microsoft wireless Pocket PC and powered Smartphone (2002) First Microsoft Smart Music Phone (2004) First Microsoft 3G PDA Phone (2005) First Microsoft tri-band 3G PDA Phone and 3G Smartphone (2006)

..Products & Innovation..

HTC is known for its innovation. It is constantly broadening the range of devices it offers introducing devices to support specific applications and new form factors that meet the increasingly diverse needs of its customers and partners. HTC's product portfolio offers easy-to-use solutions that embrace the full range of mobile multimedia resources, wireless anytime and Internet on the go.

HTC Corporation formerly High Tech Computer Corporation is a Taiwan-based manufacturer of smartphones. The company initially made smartphones based mostly on Microsoft's Windows Mobile operating system (OS) software, but in 2009 it began to shift its core focus away from Windows Mobile devices to devices based on Android OS. HTC is also a member of the Open Handset Alliance, a group of handset manufacturers and mobile network operators dedicated to the advancement of the Android mobile device platform. The HTC Dream, marketed by T-Mobile in many countries as the T-Mobile G1, was the first phone to the market that used the Android mobile device platform.

HTC NEXUS

It has a rich heritage of device 'firsts':

First color palm-size PC (1999) First Microsoft Pocket PC (2000) First Microsoft wireless Pocket PC (2002) First Microsoft powered Smartphone (2002) First Microsoft Smart Music Phone (2004) Large 2.8" TFT touch-screen LCD display First Microsoft 3G Phone (2005) First Microsoft Windows Mobile 5.0 Platform Phone (2005) First tri-band UMTS 3G device on the Microsoft Windows Mobile platform (2006) First Microsoft Windows 5.0 Smartphone (2006) First Tri-band UMTS PDA First intuitive touch screen to allow finger tip navigation (June 2007)

In early 2006, HTC launched a powerful new device with a groundbreaking form factor: the HTC Advantage. The HTC Advantage is the worlds most powerful office, boasting a 5" screen and full detachable QWERTY keyboard. This was followed in early 2007 with the introduction of the HTC Shift. Equipped with Windows Vista this device includes a brilliant 7-inch widescreen touch display and a 40 gigabyte hard drive. HTC launched the HTC Touch in June 2007 as the result of extensive R&D and the conviction that fingertip control would enable more intuitive navigation. The groundbreaking HTC Touch is equipped with TouchFLO so that consumers just sweep their finger across the screen to get access to the most commonly used content, contacts and features in a simple finger flick. Since its inception, HTC has pioneered the smart phone market through partnerships with Microsoft and key mobile operators. Additional strategic partnerships include: Intel, Texas Instruments and Qualcomm; some of the largest mobile operators including Orange, 02, T-Mobile, Vodafone, Cingular, Verizon, Sprint and NTT DoCoMo. When HTC was founded it was strictly an original design manufacturer, selling devices such as the HTC Wizard as the T-Mobile MDA and the Cingular 8125. The company focused on telecom operators who were willing to pay a contract manufacturer for customized products. Today, many HTC devices (e.g., Incredible, Evo 4G) are marketed and sold under the HTC brand, though its main focus is still smartphones. On February 17, 2010, Fast Company ranked HTC as the 31st most innovative company in the world. Bloomberg reports that HTC is studying whether to create its own mobile operating system to compete with Apple's iOS, Google's Android, and Microsoft's Windows Phone 7.

..Mission & Capabilities..

HTC's mission is to become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistic and service capabilities.

HTC is committed to driving the growth and capabilities of smartphone technology. Since its establishment, the company has developed strong R&D capabilities, pioneered many new designs and product innovations and launched state of the art PDA phones and smartphones for operators and distributors in the global telecoms industry. It has invested in a strong R&D team accounting for 25% of the total headcount and a world-class high-volume manufacturing facility, both based in Taiwan.

..Innovation Breakthrough..

..Extending Value to Customers..

Full Tech bandwidth, 2.5G, 3G, CDMA, WiFi, Bluetooth. Sophisticated field test, integration, and RF capability. Strong Innovation and deliver on time. Around 10-15 new models yearly. Seamless innovation for market evolution every year. Different Tech, Usage, Function combination. Over 50 operators and distributors worldwide. Customization for global operators. From handset provider to Enterprise solution provider. Direct service to end users.

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Enterprise opportunity. Aim to be the best Choice of Windows Mobile Devices.

...FINANCIAL POSSITION.. Consumers who say they are very satisfied with their current cell phone..

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By the consumers who is the major competitors of HTC?

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..FINANCIAL CAPIBILITY..

Revenue :Periods March June September December 2009 31407.5 38137.8 33881.0 41066.3 2010 37947.1 60960.1 75848.8 104005.0

Earnings Per Share :Periods March June September December 2009 5.90524 7.82143 6.63656 6.47857 2010 6.05106 10.4764 13.4618 17.9007

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Consensus Estimates Analysis :-

# of Estimates Mean SALES (in millions) Quarter Ending Mar-11 Quarter Ending Jun-11 Year Ending Dec-11 Year Ending Dec-12 EARNINGS (per share) Quarter Ending Mar-11 Quarter Ending Jun-11 Year Ending Dec-11 Year Ending Dec-12 LT Growth Rate (%) 12 12 26 20 12 12 27 21 4 89,055.60 99,106.10 453,116.00 559,829.00 14.09 15.37 73.38 84.28 22.38

High 103,674.00 116,413.00 544,234.00 784,668.00 17.43 18.21 93.75 129.47 30.60

Low 67,797.00 76,105.00 346,800.00 396,900.00 9.84 11.40 46.22 47.25 10.00

1 Year Ago 41,533.30 43,883.70 188,139.00 188,715.00 5.50 5.90 27.31 24.92 15.00

Growth for HTC Corp

Sales % EPS % Dividend %

1 Year 92.92 78.48 --

3 Years 33.10 11.30 --

5 Years 30.68 27.10 --

Valuation Ratios
P/E Ratio (TTM) P/E High - Last 5 Yrs. P/E Low - Last 5 Yrs. Beta Price to Sales (TTM) Price to Book (MRQ) Price to Tangible Book (MRQ) Price to Cash Flow (TTM) Price to Free Cash Flow (TTM) % Owned Institutions Company 21.72 18.79 8.91 0.99 3.05 11.25 11.53 20.99 20.82 -Industry 14.57 52.13 10.82 1.15 1.29 1.52 2.68 11.54 16.55 -Sector 12.81 60.69 11.64 1.04 2.27 2.93 3.63 6.67 22.23 -S&P 500 17.56 88.50 12.25 1.32 2.18 2.98 5.33 70.56 57.24 --

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Dividends
Dividend Yield Dividend Yield - 5 Year Avg. Dividend 5 Year Growth Rate Payout Ratio(TTM) Company 2.38 ---Industry 2.20 1.65 1.44 24.29 Sector 1.43 1.07 13.55 17.74 S&P 500 1.68 2.50 -5.39 42.57

Growth Rates
Sales (MRQ) vs Qtr. 1 Yr. Ago Sales (TTM) vs TTM 1 Yr. Ago Sales - 5 Yr. Growth Rate EPS (MRQ) vs Qtr. 1 Yr. Ago EPS (TTM) vs TTM 1 Yr. Ago EPS - 5 Yr. Growth Rate Capital Spending - 5 Yr. Growth Rate Company 153.26 92.92 30.68 176.31 78.42 27.10 50.61 Industry 10.33 8.28 7.81 355.05 -2.16 4.36 Sector 4.19 14.58 14.46 398.78 -12.11 -0.94 S&P 500 10.14 10.22 7.33 77.95 -4.47 3.43

Financial Strength
Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity (MRQ) Total Debt to Equity (MRQ) Interest Coverage (TTM) Company 1.23 1.46 0.02 0.03 -Industry 1.78 2.15 20.17 29.98 3.01 Sector 1.22 2.07 11.91 31.36 0.47 S&P 500 0.66 0.98 116.16 165.99 16.61

Profitability Ratios
Gross Margin (TTM) Gross Margin - 5 Yr. Avg. EBITD Margin (TTM) EBITD - 5 Yr. Avg Operating Margin (TTM) Operating Margin - 5 Yr. Avg. Pre-Tax Margin (TTM) Company 29.83 31.06 16.18 19.97 15.82 19.44 16.13 Industry 26.69 30.44 -10.94 6.82 7.69 7.00 Sector 21.98 36.20 -25.03 11.54 14.27 11.68 S&P 500 31.45 29.08 -18.61 -14.56 15.26

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20.18 Pre-Tax Margin - 5 Yr. Avg. Net Profit Margin (TTM) Net Profit Margin - 5 Yr. Avg. Effective Tax Rate (TTM) Effecitve Tax Rate - 5 Yr. Avg. 14.18 18.12 12.12 10.19

8.17 5.34 5.70 14.89 27.88

12.35 8.71 9.44 13.50 26.38

14.15 11.21 10.42 19.76 24.09

Efficiency
Revenue/Employee (TTM) Net Income/Employee (TTM) Receivable Turnover (TTM) Inventory Turnover (TTM) Asset Turnover (TTM) Company 22,159,080 3,141,085 6.26 12.01 1.80 Industry 1,724,351 67,540 3.34 4.10 0.52 Sector 5,435,787 688,263 3.87 230.21 0.60 S&P 500 691,396 84,868 8.55 7.15 0.55

Management Effectiveness
Return on Assets (TTM) Return on Assets - 5 Yr. Avg. Return on Investment (TTM) Return on Investment - 5 Yr. Avg. Return on Equity (TTM) Return on Equity - 5 Yr. Avg. Company 25.51 28.49 56.29 52.87 56.33 52.95 Industry 3.54 5.54 5.01 8.06 6.25 9.24 Sector 8.54 10.78 11.40 14.88 12.52 15.97 S&P 500 5.96 5.56 7.61 7.23 17.69 14.47

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Largest Windows Mobile Device R&D team worldwide. Strong management experience in handheld market. Unparalleled design expertise in RF, logic , software, mechanical and power. Multimedia.

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.....HTC Corporation SWOT Analysis.....

SWOT is the tool to see that where organization stands, which areas required improvement, which areas required serious consideration, which would be the source of growth, which things need avoidance and so on. The SWOT of HTC will help to understand the position of HTC in the market.

Strengths:It is the leading maker of PDAs smart phones in the world. It is establishing in the world rapidly and attracting more and more customers from all around the world. It has successfully recognized its brand name and has got the good image about the product quality. Its products are considered as reliable products and its gaining more and more success rapidly. The research and development in HTC has been given more importance as it is the way to know what customers want. There is the strong set up of research and development in HTC. The portfolio of HTC is quite wide it has made 42 smart phones product up till now. The customer base of HTC is also very wide as it caters the customer national and international both and the no. of customers also increasing as the time passes.

Weaknesses:As its weakness, HTC is not a very much recognized brand in the market. Its competitors, which are Nokia, Blackberry, Apple etc. are way much popular and have acquired a big share of market. Another weakness is that, they got a very small range of cell phones models as compared to their competitor, Nokia, which has got a huge variety of smart phones, from cheapest to most expensive one.

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Opportunities:HTC is providing Touch Screen Cell Phones, which are very much in demand these days, most of the people, who use expensive cell phones, goes for Touch Screen. On the other side, Since HTC collaborated with Google and launched their cell phones with Google Android OS install in it, their market also got increased. It is also said that, because of the name of Google, HTC got popularity. Google popularity plays a huge role in the success of HTC.

3G technology has been launched all over the world, and is getting launched in other countries as well. Since HTC cell phones have got 3G technology support, so it is an opportunity for HTC company that where ever the 3G technology launches, HTCs cell phones demands would raise their.

Threats:The major threat to HTC, or any other Smartphone company, is a very much popular and highly in-demand brand, Apple iPhone. It is a big hindrance in the demand of HTC cell phones. Apart from that, the financial crunch could also be the threat for the company. Thats because HTC smart phones are expensive and are not affordable for many of the smart phones users. On the other side Nokias smart phones are way cheaper, and are providing the same characteristics, which a Smartphone should have. So lot of people prefers Nokia on HTC.

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Key developments for HTC CORP

HTC and AT&T Introduce the HTC HD7S Smartphone 21st march 2011
HTC Corporation announced that the HTC HD7S smartphone will be available as part of the AT&T, Inc. family of devices in the coming weeks. The slim, sleek HTC HD7S is optimized for high-impact visuals with a large 4.3" high-resolution screen, high-definition video capture and a focus on gaming that realizes the power of Xbox LIVE --bringing gameplay to life. With the HTC HD7S, HTC is bringing its second Windows Phone 7 device to AT&T and, along with the HTC Inspire 4G, now offers two super LCD 4.3" display devices for AT&T customers. The HTC HD7S is an entertainment lover's dream. A 1GHz processor can handle data-intensive applications, while integration with Zune means that users can enjoy not only music, but their favorite videos and movies in cinematic-style on the large 4.3" high-resolution screen and built-in kickstand. For those who refuse to compromise on their mobile gaming experience, the HTC HD7S brings gameplay to life by harnessing the power of Xbox LIVE. For capturing video with incredible quality and detail, the HTC HD7S features a 720p HD camcorder. Windows Phone 7 delivers a simple, streamlined and integrated experience on the HTC HD7S through Windows Phone Hubs. Windows Phone Hubs bring together a related set of applications, services and content into a single view to simplify common tasks. With the exclusive HTC Hub, HTC is providing a unique series of applications and utilities that include weather and stock applications and a photo enhancer that enables a person to apply special effects before sharing photos with their friends. The unique AT&T U-verse mobile app, which allows U-verse customers to manage their DVR recordings, browse TV listings, and download and watch hit TV shows on the HTC HD7S's extra-large display, is also integrated into the device.

Thunderbolt by HTC, 4G LTE Smartphone for Verizon Wireless Arrives March 17, 2011
Verizon Wireless and HTC announced that the ThunderBolt(TM) by HTC, exclusively from Verizon Wireless, is available on March 17 in Verizon Wireless Communications Stores for $249.99 with a new two-year customer agreement. Powered by Android(TM) 2.2, the ThunderBolt by HTC is the first smartphone to take advantage of Verizon Wireless' 4G LTE network. The ThunderBolt by HTC features the latest version of the HTC Sense(TM) experience, which offers enhancements including new personalization options, a consolidated e-mail inbox, and unique camera effects and filters. The ThunderBolt by HTC is equipped with support for Google Mobile Services, including Gmail(TM), YouTube(TM) and Android Market(TM) with thousands of free apps. Additionally, the ThunderBolt by HTC will feature 4G LTE optimized apps such as EA's Rock Band, Gameloft's Let's Golf, Tunewiki and Bitbop.

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HTC Corporation Reports Revenue Results for the Month and Year to Date Ended February 2011; Provides Revenue Guidance for the First Quarter of 2011
HTC Corporation reported revenue results for the month and year to date ended February 2011. The company's operating revenue totaled TWD 32.11 billion or around RMB 7.15 billion in February 2011, reflecting a year-on-year jump of 212.33% from TWD 10.28 billion a year ago. The sharp increase was lower than a year-onyear jump of 213.44% the firm realized in January 2011. In the first two months of 2011, the company reaped TWD 67.13 billion in operating revenue, whereas it booked TWD 45.67 billion in the corresponding period of 2010, representing a jump of 212.91%. The company aims to earn TWD 94 billion in operating revenue in the first quarter of 2011, 147% more than in the same quarter of last year, and its smart phone sales volume is expected to surge 157% year on year to 8.5 million units in the first quarter of 2011.

..Group Suggestion To a Company..

Price should be normal. Features should be improved and it should be understand by the normal should not be complicated. Size of the cell should be of normal size. people, its

Battery backup should be increased. Touch pad should be smoothly and easy to operate . Music System is of high quality .

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..Conclusion..
HTC is one of the leading manufacturers of PDAs and smart phones around the world. It is one of the fastest growing companies in the world and maximizing its market share rapidly. The research and development in HTC has been given more importance as it is the way to know what customers want. It has successfully recognized its brand name and has got the good image about the product quality.

..THANK YOU..