HTC to cut costs, sell cheaper devices
Print Edition
Smartphone maker HTC Corp plans to slash costs by nearly a quarter and sell cheaper devices in a bid to bounce back to profit in the October-December quarter.
Under pressure in a market dominated by Apple Inc and Samsung Electronics, the company warned revenue for the fourth quarter will fall up to 15 percent from the previous quarter, slipping below analysts’ estimates.
The company said during an investor briefing on its outlook yesterday that it expects fourth-quarter earnings per share of just NT$0.10 to NT$1.70 (US$0.003 to US$0.058), having sunk to its first-ever quarterly net loss of NT$3.58 per share in the previous three months.
Struggling to bolster what research firm Gartner estimates is a 2.6 percent share of the global smartphone market with its flagship One series, the company hired Hollywood actor Robert Downey Jr earlier this year for a series of TV ads to promote its brand.
Officials said during the briefing that the company will keep its operating expenses low in the fourth quarter at NT$10 billion, 24 percent below the previous quarter’s NT$13.1 billion. They didn’t say exactly where savings would be made.
“We’re looking at broader products in this quarter ... we aim for higher volume into 2014 that will give better profitability,” financial chief Chialin Chang said in the briefing, referring to more affordable smartphones.
That would mark a switch from a previous strategy. HTC has previously said it is aiming to capture 20 percent of the high-end smartphone market in China. But research firm IDC said that nearly 60 percent of second-quarter smartphone shipments in China came from models that cost US$150 or less.
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