HTC shares dip after U.S. seizes shipment of smartphones
Washington, D.C., United States (4E) – Share prices of Taiwan’s smartphone manufacturer HTC fell in trading after United States customs officials held up shipments of its new smartphones over a patent dispute.
By closing on Tuesday, HTC stock prices dropped by 6.6 percent in trading on the Taiwan Stock Exchange.
The International Trade Commission on Dec. 19 ruled that HTC was guilty of infringing a patent held by Apple. That resulted in a ban on the sale of any HTC phones in the United States that use technology involving that patent.
Although HTC said it has since altered its technology and design, customs officials say they must still inspect the shipments.
HTC officials say they believe their smartphones comply with the December ruling. The company also said it is working with customs to secure approval for its phones to enter the U.S.
The company was an early leader in the Android-powered smartphones, but has since lost market share to Samsung and Apple. Its first quarter net profit was down 70 percent from last year.
HTC is trying to regain market share with new smartphone models, which it began launching earlier this year. However, the delay of this shipment in clearing customs will likely hurt sales of its new models in the U.S., which is one of its key markets.