HTC expects revenue to shrink further
Taiwan smartphone maker forecasts sixth consecutive fall in quarterly sales that are below market target as it loses out to mainland rivals
HTC has forecast its sixth consecutive decline in quarterly sales as the Taiwanese smartphone maker faces a loss of market share to mainland rivals.
HTC dropped out of the global top five by smartphone market share in the past quarter as Samsung Electronics, Huawei Technologies and ZTE gained share. A new smartphone, codenamed M7, to be unveiled this month may help boost sales and shipments next quarter.
"The M7 could enter mass production in late February, with shipments ramping up from 1 million in [the first quarter] to 2.5 million in [the second]," said Birdy Lu, of Daiwa Securities, in a report last Friday.
Sales might rise as much as 20 per cent in the second quarter from the current period, Lu said.
Net income fell 91 per cent in the past quarter to NT$1 billion, the lowest in eight years, the company reported last month. Revenue of NT$60 billion and operating profit of NT$600 million were equal to its own guidance given in October.
HTC shares closed 1.6 per cent lower at NT$285.50 before the earnings were announced, taking their decline to 5 per cent this year following a 40 per cent drop last year.