TCL Communication Technology warns of loss

There has been a price war among entry-level smartphones.

TCL Communication Technology Holdings Limited is expecting to record a loss in the financial results for both the three months and the year ended 31 December 2012.

Among the reasons cited was the general decrease in the average unit selling price and gross profit margin for feature phones. The company said this was brought by the price war.

An announcement said the sales volume of the Group’s smartphones has not achieved the economies of scale.