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By the financial year 2002, the company had turned around the business and returned to profitability. The company issued a profit warning in March 2001 and launched a broad restructuring plan. Although the acquisition increased sales of VTech's telecommunication products by 50%, it led to operating losses and write-offs. The acquisition also gave VTech the exclusive right for 10 years to use the AT&T brand in conjunction with the manufacture and sale of wireline telephones and accessories in the United States and Canada. In 2000, to expand its cordless phone business, VTech acquired the consumer telephone business of Lucent Technologies. Taking advantage of this, VTech began development on a cordless telephone, using the 900 MHz band, and in 1991 introduced the world's first fully digital 900 MHz cordless telephone. In 1985, the United States Federal Communications Commission (FCC) allocated the frequency band 900MHz to ISM (industrial, scientific and medical) devices.

VTech exited the personal computer market in 1997, due to tight competition.

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VTech then branched out into personal computers, including a series of IBM compatible PCs beginning in 1983, followed by Apple II compatible computers, beginning in 1985, including a model called Laser 128. An electronic product with an external projector from French company Ludotronic was adapted by VTech and sold as the VTech ProScreen in 1984, following the release of VTech's Gamate and Variety handheld products the year prior. Next VTech made the video game console CreatiVision. An exclusive version under the name Computron was offered to Sears, with the product being prominently advertised by Sears, in its catalogue, which was a popular shopping guide. It taught children basic spelling and maths. VTech unveiled its first electronic learning product, called Lesson One, at the New York Toy Fair, in February 1980. Starting in the early 1980s, a line of electronic games would be manufactured. In 1978, the founders introduced LED games they had developed to buyers from RadioShack in the US, which were sold under the RadioShack brand. The United Kingdom was chosen as the first market for Pong, as Hong Kong and the UK used the same standard for television systems. Since only consumers in North America and Europe could afford such items, the company targeted primarily these markets.

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In 1977, the company created its first home TV game console, a version of Pong. VTech initially focused on developing video games. In the first year, turnover was less than US$1 million. Wong & Leung set up a small factory in To Kwa Wan, with a US$40,000 investment and a staff of 40 people.

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When the first single-chip microprocessor, the Intel 4004, became available in the early 1970s, the company saw the potential it offered for portable consumer electronics products. VTech was founded in Hong Kong in October 1976 by two local entrepreneurs, Allan Wong (Chi-Yun) and Stephen Leung. VTech has developed edutainment consoles since 1988, their first being the Socrates. It also terminated its American Depositary Receipt programme with effect from 21 January 2011. VTech delisted voluntarily from the London Stock Exchange on 7 October 2008. In 1993, the company established its American depositary receipt programme. In 1992, the company relisted on The Stock Exchange of Hong Kong Limited, establishing a dual primary listing with London. VTech obtained a primary listing on the London Stock Exchange in 1991. It was privatised and delisted from The Stock Exchange of Hong Kong Limited in 1990. The company first listed in Hong Kong in June 1986 under the name 'Video Technology International (Holdings) Limited'. In 1991, it was renamed 'VTech Holdings Limited' to reflect a wider portfolio of products. The company was originally named 'Video Technology Limited' in reference to the company's first product, a home video game console.

3.3 Contract manufacturing services (CMS).

3.1 Electronic learning products (ELPs).

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