HTC's Q3 net profit falls 79%
Source: Bloomberg News |
October 9, 2012, Tuesday
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Print Edition
Print Edition
HTC Corp, Asia's second-largest smartphone maker, posted a record 79 percent drop in quarterly profit as competition from Samsung Electronics Co and Apple Inc drove down sales of the company's devices.
Third-quarter net income slumped to NT$3.9 billion (US$133 million), the Taoyuan, Taiwan-based company said in a statement yesterday. That missed the NT$4.43 billion average of eight analysts' estimates compiled by Bloomberg News in the last 28 days.
HTC, maker of the One, Sensation and Desire handsets, lacked a "sense of urgency" while "bureaucracy crept in," Chief Executive Officer Peter Chou said in an e-mail to employees in August. Gains by Samsung and Apple's iPhone 5 sales and stronger competition in China from unbranded, or so-called white box, phones could hamper a rebound this quarter, according to Kevin Chang, an analyst at Citigroup Inc in Taipei.
"HTC is likely facing further share loss in the US and Europe" in the fourth quarter, Chang, who rates the stock sell, wrote in a report dated last Thursday. "While HTC was doing well in China in the third quarter, we believe the dramatic price declines and performance improvements of white box smartphones have dampened HTC's momentum in China."
Third-quarter revenue fell 48 percent to NT$70.2 billion, missing the NT$75 billion average of eight analysts' estimates compiled by Bloomberg News in the last 28 days. HTC on August 3 forecast revenue of NT$70 billion to NT$80 billion. Operating income slumped 76 percent to NT$4.9 billion, according to HTC.
Third-quarter net income slumped to NT$3.9 billion (US$133 million), the Taoyuan, Taiwan-based company said in a statement yesterday. That missed the NT$4.43 billion average of eight analysts' estimates compiled by Bloomberg News in the last 28 days.
HTC, maker of the One, Sensation and Desire handsets, lacked a "sense of urgency" while "bureaucracy crept in," Chief Executive Officer Peter Chou said in an e-mail to employees in August. Gains by Samsung and Apple's iPhone 5 sales and stronger competition in China from unbranded, or so-called white box, phones could hamper a rebound this quarter, according to Kevin Chang, an analyst at Citigroup Inc in Taipei.
"HTC is likely facing further share loss in the US and Europe" in the fourth quarter, Chang, who rates the stock sell, wrote in a report dated last Thursday. "While HTC was doing well in China in the third quarter, we believe the dramatic price declines and performance improvements of white box smartphones have dampened HTC's momentum in China."
Third-quarter revenue fell 48 percent to NT$70.2 billion, missing the NT$75 billion average of eight analysts' estimates compiled by Bloomberg News in the last 28 days. HTC on August 3 forecast revenue of NT$70 billion to NT$80 billion. Operating income slumped 76 percent to NT$4.9 billion, according to HTC.
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