Cher Wang apol­o­gizes for dis­ap­point­ing per­for­mance

The China Post - - LOCAL -

The chair­woman and chief ex­ec­u­tive of­fi­cer of HTC Corp. (

) apol­o­gized to share­hold­ers Tues­day for the Tai­wanese smart­phone maker’s dis­ap­point­ing per­for­mance re­cently.

In her open­ing re­marks at HTC’s gen­eral share­hold­ers meet­ing, Cher Wang (

) apol­o­gized for what she de­scribed as an overly con­ser­va­tive mar­ket­ing strat­egy and poor op­er­a­tions man­age­ment ef­fi­ciency.

Those de­fi­cien­cies l ed to HTC’s dis­ap­point­ing per­for­mance re­cently in the fiercely com­pet­i­tive mar­ket land­scape and to its poor share price, she ad­mit­ted.

Wang promised that HTC will launch a “hero prod­uct” in its smart­phone lineup in Oc­to­ber and make sig­nif­i­cant im­prove­ments in in­no­va­tion in the com­pany’s next- gen­er­a­tion flag­ship phone in 2016 to strengthen HTC’s prod­uct port­fo­lio.

She also pledged that HTC will take steps to re­duce its pro­duc­tion costs, op­ti­mize its sup­ply chain and out­source or­ders as ap­pro­pri­ate to in­crease op­er­a­tional flex­i­bil­ity.

In ad­di­tion, HTC will seek to “ra­tio­nal­ize in­ter­nal pro­ce­dures” and de­velop new busi­nesses such as vir­tual re­al­ity ap­pli­ca­tions, in­clud­ing the Vive vir­tual re­al­ity head­set that was de­vel­oped jointly with U. S. video com­pany Valve and un­veiled on March 1, Wang said.

“I’m op­ti­mistic about HTC’s out­look and devel­op­ment. I be­lieve we will have promis­ing prospects if we choose and fo­cus on de­vel­op­ing the right prod­ucts,” the chair­woman told hun­dreds of share­hold­ers.

Wang’s apol­ogy came af­ter HTC shares took a beat­ing on Mon­day, fall­ing to a 12- year low of NT$ 97 ( US$ 3.14) at one point af­ter its sup­pli­ers re­port­edly cut their 2015 ship­ment fore­cast for the flag­ship HTC One M9 smart­phone by 30 per­cent.

Her re­marks seemed ini­tially to boost in­vestors’ spir­its, as the stock re­bounded on Tues­day to the day’s high of NT$100 at 9:24 a. m.

But they were ap­par­ently not enough to in­still last­ing con­fi­dence, with HTC shares fall­ing 0.51 per­cent to NT$ 97.5 as of 10: 40 a. m. be­fore mov­ing slightly higher.

At a con­fer­ence call with an­a­lysts on April 28, HTC pro­jected lower- than- ex­pected rev­enues of NT$ 46 bil­lion to NT$ 51 bil­lion for the April- June quar­ter of 2015, with earn­ings per share of NT$ 0.06 to NT$ 0.34.

CNA

Cher Wang ( ), chair­woman and chief ex­ec­u­tive of­fi­cer of HTC Corp., speaks dur­ing HTC’s gen­eral share­hold­ers meet­ing in this photo pro­vided by HTC, yes­ter­day. Wang apol­o­gized to share­hold­ers for HTC’s fall­ing share prices and the com­pany’s re­cent dis­mal per­for­mance.

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