|Red ink flows at Taiwan’s HTC, sales and earnings plunge
Taiwan's HTC said it had swung to its first net loss since listing in 2002, as it struggles to gain foothold in the smartphone market.
The company reported a net loss of T$2.97 billion (US$101 million) in July-September, compared with a net profit of T$3.9 billion in the same period last year. It made a net profit of T$1.25 billion in April-June.
Sales also fell 33 percent year-on-year to T$47.05 billion, it said.
In July, releasing second quarter results, Chief Executive Peter Chou (pictured), said the company is “looking forward to delivering great products and results,’’ in the second half.
Second quarter net profit plunged 83 percent from last year due to higher costs and inventories.
According to research firm IDC, the Taiwanese company held a 4.6 percent share of the global smartphone market in 2012, sharply down from 8.8 percent a year earlier. Samsung held a 30.3 percent stake while Apple had 19.1 percent.
As part of its efforts to boost sales, the company has planned a range of mid-tier smartphones later this year as analysts warn of waning demand for high-end gadgets.
HTC has also enlisted Iron Man star Robert Downey Jr to front its marketing and enhance its global brand.
As well as selling its own smartphones, HTC makes handsets for a number of leading US companies and supplies Google's Nexus One.—AFP