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HTC lowered second-quarter expect yesterday’s share price hit a 2-year low

August 14th, 2012 Leave a comment Go to comments

On June 6, the HTC announced that it would cut its revenue forecast for the second quarter 13.3%, to NT $ 91 billion yuan (about US $ 3.03 billion), while the operating margin is expected to cut 2%, to 9%. HTC said in a statement, reduced mainly because United States and weaker-than-expected sales in the European market, some products in the United States market shipment and is available for all postponed.

Two months ago, HTC CEO Peter Chou said that the United States faces strong competition from Apple iPhone4S, which in the past two quarters contusion HTC profits, but European markets growth kinetic energy recovery, the Asian markets performed better, expect United States away the little balance in the market.

League Secretary General Li Yi believes that the mobile Internet industry, such as like Apple, brand, influence is strong enough, a mobile phone can be; but brands not enough, you need more products. High-end was low-end, rushed forward or retired, many doubt that HTC are in pain of a critical crossroads.

HTC also explains that this adjustment includes the one-time cost of NT $ 2.6 billion yuan used to speed up the clearance of some stranded products last year. Apart from the costs, forecast for Q2 sales revenue of $ 93.6 billion yuan NT, gross margins and operating interest rate forecast and 29%, respectively.

But investors have lost confidence. Under the influence of this message, HTC shares the same day trading-7%, 378 Yuan NT, creating low since May 2010.

It occupies almost half of the sales of the United States market, HTC problems one by one. Recently, its rivals Nokia and Apple to link to United States International Trade Commission (ITC), who proposes “337 investigation” request to the latter on matters relating to patent infringement sanctions applied to HTC.

Previously, it had been defeated in a patent dispute with Apple, leading to several new products in the United States to defer listing.

There is news that Microsoft Windows 8 operating system on HTC has been excluded from the outside of the product development process, cause is worried that HTC could not sell a sufficient quantity of the product, or does not have sufficient experience to produce tablet computers.

Competitor does not give it breathing space of time too. Samsung with the Android camp, has started to eat into its share. Compare HTC, Samsung industry chain on the high degree of vertical integration model to better control costs, its Samsung Galaxy phones are being launched by United States media’s pursuit.

United States most recent data from market research firm comScore show that as of April, the US mobile phone users reached 234 million aged 13 and over. Samsung 25.9% share first, followed by LG (19.2%), Apple (14.4%), Motorola (12.5%) and HTC (6%).

In addition to mobile phone manufacturers fierce industry competition, HTC may also find reasons from himself.

Analysys International analysts Wang Ying also said further, weak mainly Android HTC Smartphone homogenization serious in recent years, HTC has failed to develop highlights in the homogenization of products. “HTC product line, and a large number of introduced new, some new little technology update, look and design to change, a long time, were not too interested consumers. ”

To win back market share, HTC has launched a counterattack starting on the product, at the Mobile World Congress in Barcelona, in February of this year launched the HTC ONE series.

However, recovery is not easy. A quarter of this year, HTC-MarketWatch 4.464 billion new Taiwan dollars (about US $ 152 million), down 70%; revenue of NT $ 67.79 billion yuan, down 35%.

Text/business news

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