HTC Value Chain

HTC – Value Chain

What is HTC’ Value Chain?
• Creates value by performing a series of activities and it represents ho w each competitive advantage created via an organization adds value to the service or product for each customer.
• R&D, Production, Marketing & Sales, Customers Service and Human R esource are adding the value to their company.

How HTC adding value?
• HTC has established long-term strategic partnerships with industry lea ders and major telecom service providers to promote the growth of th e smartphone industry. With their relentless commitment to innovatio ns, they will continue to offer a comprehensive product portfolio to sa tisfy the diverse consumer needs.

Progress in Research & Developmen t • R&D professionals account for almost 30% of HTC's headcount
• Annual R&D investments regularly represent 3 to 4 percent of total re venues. • Earning a long line of "firsts" that includes the world's first Windows
Mobile and Android smartphones, first dual-mode GSM/WiMAX phon e, first 3G/4G Android phone, and first LTE Android phone.
• HTC Thunderbolt and HTC Titan II - the world's first LTE Android and LT
E Windows Phone smartphones.

R&D expenditures in recent years

Environmental protection - Green pr oducts • HTC want to design a green product with:
1. Product design
2. Conform consumer expectations
3. Choose materials with lower environmental risks

Environmental protection - Sustaina ble packaging
• The basis of HTC's efforts in packaging reduction:
1. Reduce the use of materials
2. Use of biodegradable materials
3. Printing with environmental friendly ink (soy-based ink)
4. Transport-friendly packaging design

Future R&D plans
Now:
1. Now focus on research and development of applications related to the user experienc e and mobile data services, and on providing product-related technical support and a fter-sales service.
2. R&D personnel account for 30% of HTC's employees worldwide, equals to 4-5% of ope rating income.
Future plan:
3. Continue to research and develop technologies
4. HTC will continue to break new ground in the smart handheld device industry and furt her streamline the user experience in order to strengthen the company's long-term co mpetitiveness. Workflow for handheld devices, from
R&D through production