HTC posts big quarterly loss over weak sales

HTC reports another quarterly loss

HTC reports another quarterly loss

HTC may be Taiwan’s dominant smartphone manufacturer, but it just couldn’t seem to catch a break overseas as the company posted a bigger-than-estimated third-quarter loss. This is HTC’s eighth straight quarterly loss, mainly contributed to HTC’s loss of market share against Apple and Samsung.

In an e-mailed statement, HTC posted a net of NT$2.97 billion (about US$101 million) in the months from July to September. That is way more compared to an average of NT$1.71 billion loss compiled from 16 analyst estimates, according to data that Bloomberg has gathered.

The Taoyuan City-based company has failed to halt sliding sales despite with an impressive flagship device in HTC One, as it faced intense competition from Chinese competitors like Huawei. Faced with the dilemma of not being included among the top five smartphone producers in the second quarter, HTC plans to reverse its fortunes as it hires actor Robert Downey Jr. to boost promotions and cheaper mobile devices in the pipeline.

Shares of HTC gained 1.5 percent, closing in at NT$135 in Taipei, but its stock value decreased by about 80 percent in the past two years.

Meanwhile, the company announced an operating loss of NT$3.5 billion and only NT$47 billion in sales during the third quarter. The actual figures were close to estimates of NT$2.2 billion and NT$54 billion, respectively.

Source: Bloomberg

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