HTC’s profit dips by 79 percent
Taipei, Taiwan (4E) – Taiwan-based mobile phone maker HTC reported a 79 percent dip in quarterly profit. HTC is Asia’s second largest mobile phone maker behind Samsung. Strong sales by Samsung and Apple in Asia severely affected the company’s sales.
Analysts estimated that HTC’s net income would average around $151 million. Instead the company reported a net income of $133 million.
Aside from Samsung and Apple, HTC’s decline in sales was affected by unbranded smartphones from China, which run on the Android operating system.
“HTC is likely facing further share loss in the U.S. and Europe. 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.” Citigroup analyst Kevin Chang stated, according to Bloomberg News.
This year HTC saw its stock drop by 42 percent. Its rival Samsung reported a gain in profit in the third quarter because of its line of Galaxy smartphones and tablets.
In an email to Bloomberg News HTC chief executive officer Peter Chou expressed the company’s need to “kill bureaucracy.” He added that people in meetings sit around and talk “all the time but without decision, strategic direction or sense of urgency.”
Aside from Samsung, Apple and China smartphones, HTC also faces competition from ZTE and Huawei Technologies. Analysts predict the growing list of competitors will further hurt HTC’s sales.