HTC shares fall be­low NT$100 mark af­ter sup­pli­ers cut fore­cast for 2015

The China Post - - TAIWAN BUSINESS -

Shares of Tai­wan-based smart­phone ven­dor HTC Corp. took a beat­ing in Mon­day morn­ing trade, fall­ing be­low NT$100 (US$3.25) af­ter its sup­pli­ers re­port­edly cut their 2015 ship­ment fore­cast for the flag­ship HTC One M9 smart­phone by 30 per­cent, deal­ers said.

The lower fore­cast re­flected the fierce com­pe­ti­tion in the global high- end smart­phone busi­ness, which has placed pres­sure on HTC’s bot­tom line, deal­ers said.

Shares of HTC dropped 4.85 per­cent to NT$98.00 with 13.65 mil­lion shares chang­ing hands. The weighted in­dex on the Tai­wan Stock Ex­change ended down 0.77 per­cent at 9,625.69 points.

Due to the ship­ment fore­cast, the stock be­gan fac­ing heavy down­ward pres­sure soon af­ter the lo­cal bourse opened, and sell­ing es­ca­lated, push­ing down the share price to NT$97 at one point, the low­est level in 12 years, deal­ers said.

The lo­cal me­dia re­ported that HTC’s sup­pli­ers have low­ered their fore­cast for HTC One M9 ship­ments by 30 per­cent to only 3.2 mil­lion units for the en­tire 2015. HTC un­veiled the model in March.

Amid strong com­pe­ti­tion from its ri­vals, HTC shares have fallen al­most 40 per­cent from NT$161 ear­lier in the year. HTC Chair­woman Cher Wang could en­counter com­plaints from mi­nor­ity share­hold­ers about the sit­u­a­tion when the com­pany holds its an­nual gen­eral meet­ing Tues­day.

In a writ­ten re­port to HTC’s share­hold­ers ahead of the meet­ing, Wang said the com­pany had been fac­ing fierce com­pe­ti­tion in the global mo­bile de­vice in­dus­try over the past two years but man­aged to turn a profit in 2014, in­di­cat­ing that it had be­come fun­da­men­tally health­ier.

Last year, HTC posted NT$1.48 bil­lion in net profit, com­pared with a net loss of NT$1.32 bil­lion in 2013. Its earn­ings per share for 2014 stood at NT$1.8, im­prov­ing from a loss per share of NT$1.60 a year ear­lier.

HTC said that to ex­tend its reach be­yond smartphones in the global high tech mar­ket, it has en­tered the turf of wear­able de­vices by launch­ing the HTC Grip fit­ness tracker and the HTC Vive, a vir­tual re­al­ity head­set de­vel­oped jointly with US video game sup­plier Valve.

HTC held a 1.6-per­cent share of the global smart­phone mar­ket in 2014 and was ranked as the world’s 11th largest smart­phone ven­dor, ac­cord­ing to mar­ket in­for­ma­tion ad­vi­sory firm Jef­feries.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.