Fexon Technology Ltd|Fexon Technology Ltd news: Cost margin new products

Fexon Technology Ltd reports: Comparing 2007 waveguide shares, Amoi Electronics and Nokia's decision-making(Fexon Technology Ltd), can be found Nokia's mobile phone operators tend to be more decision-making handset manufacturers become a "pocket on clothes, portable personal terminal." According to preliminary statistics, in 2007 China's mobile phone market, prices of more than 5,000 yuan phone, Nokia cell phone with more features, and compared with the price of mobile phones, Nokia has obvious performance advantages.

In 55 Amoi mobile phone, only 4 of the cell phone price is higher than the 2,000 yuan, four mobile phones with GPS navigation functions. Waveguide handset prices are lower than 2,000 yuan, the highest price of a mobile phone E750 waveguide with GPS navigation functions at only 1,999 yuan.

The number of investment projects choice, Nokia's investment project is conducive to maintaining Nokia in the "mobile phone-based individual terminals" competitive advantage. The waveguide shares R & D investment of nearly 200 million yuan, "with the more vulnerable (Doeasy)" series of smart phones, as research continues to convenient calling features and pleasing in appearance-based, there is no R & D projects reach the expected investment returns.

Nokia 2007 operating income increased by only 1% over a year earlier, but mobile phones than the same period last year operating profit increased 33%, because Nokia is gradually to the "mobile phone-based individual terminals," and that the average selling price obvious phones higher than competitors.

2007 waveguide phone revenues fell 42 percent over the previous year, compared with the previous year but operating profits fell by 73%, profit rate of decline is far greater than the decline in sales. Waveguide with similar phones, Amoi phone revenues fell 50 percent over the previous year, but operating profit declined 84 percent over the previous year. Bird and Amoi mobile phone operating margins are from the double-digit decline in 2006 to 2007, a number far lower than the Nokia 2007 mobile phone operating margins 21.7%.

2007 Bird shares and Amoi in huge losses, mainly due to the slow introduction of new products, and the old models of pressure on the larger inventory digestion, and new products into a larger context errors, failed to achieve the desired profit. 2007, Nokia introduced 52 new mobile phones, Bird shares launched 38 new mobile phones, Amoi Electronics launched 36 new handsets.

Nokia is expected to launch in July 2008-N96 phone, the phone memory capacity of 16 GB, built-in Carl Zeiss camera lens camera pixels to 5 million pixels, and can play video, radio and television reception, built-in MP3 player, with GPS navigation functions and office functions. March 2008, Bird shares launched D758 phone, the phone with remote control and anti-theft function. In February 2008, listed Amoi A525 cell phones, the phone offers video playback, built-in FM radio. And the new listing of the mobile phone compared to Bird and Amoi mobile phone functions are obviously inadequate.

Nokia revenue and profitability

07 (100 million euros) 06 (100 million euros) annual rates of change

Mobile revenues 250.83247.691%

Mobile operating profit 54.3441.0033%

Mobile margins 21.7% 16.6%

Source: waveguide shares 2007 interim report

Amoi handset revenues and profitability

07 first half (million) the first half of 06 (million) annual rates of change

Mobile revenues 199154.8342105.1-42%

41761.3-73 phone operating profit 11431.8%

Mobile margin 5.74% 12.21% (Fexon Technology Ltd)