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HTC posts first-ever quarterly losses as troubles multiply

Last Updated: Friday, October 4, 2013 - 09:13

Taipei: Taiwan's HTC Corp slid into the red for the first time in the third quarter, with sales hit hard by fierce competition in the smartphone market, supply chain constraints and internal turmoil.

Underscoring a dramatic decline for a company which boasts award-winning smartphones but has failed to develop a durable brand of handsets, it posted an operating loss of T$3.5 billion as sales for the quarter tumbled by a third from the same period a year earlier.

At a net level, it booked a loss of T$2.97 billion ($100 million), bigger than an expected loss of T$1.8 billion, according to Thomson Reuters SmartEstimates. That compares with a net profit of T$3.9 billion in the same quarter last year.

Its shares were down 2.3 percent in early trade.

HTC lacks the scale of bigger rivals Apple Inc and Samsung Electronics Co Ltd and its troubles this year have only multiplied.

In addition to internal feuding and executive exits, sources have said that it is facing casing shortages for its HTC One Mini. It has also lost some patent cases and media have reported that three of its design executives have been arrested on suspicion of leaking trade secrets.

HTC's share of the global smartphone market has plummeted from a peak of 9.1 percent in 2011 to 2.6 percent in the most recent quarter, according to research firm Gartner and analysts have said it needs a wholesale reevaluation of its strategy in order to survive.

Reuters

First Published: Friday, October 4, 2013 - 09:10
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