Acer CEO says company not considering takeover of HTC
A top executive of Taiwanese computer maker Acer Inc. ( ) on Tuesday quashed speculations about a takeover of HTC Corp. ( ), saying his company does not have the capacity to acquire the struggling smartphone manufacturer.
“We have no plans to do so at this moment,” said Jason Chen (
), Acer corporate president and CEO, at a media briefing Tuesday, when asked about a possible acquisition of HTC.
Acer does not have the capacity to acquire the Taiwanese smartphone maker or the capability to integrate the resources and operations of the two companies, Chen said.
Furthermore, Acer has no reason to consider such an acquisition because Acer has been making good progress in its smartphone business over the past 18 months after Chen joined the company, he said.
One June 5, HTC lowered its second-quarter sales forecast and projected a loss per share of nearly NT$10 (US$0.32) for that period.
Asked whether he had any advice for HTC, Chen said: “Don’t just look at the shadow. Face the sun. Run as fast as you can. Use your strength.”
He said that while it is “human nature” to want to fix problems, that approach “does not necessarily get you to where you want to go.”
Chen, who took office in January 2014 and pulled Acer back from three consecutive years of operating losses, was answering reporters’ questions on the HTC issue four days after Asustek Computer Inc. ( ) hinted a possible takeover of HTC.
Speaking with the press after a shareholders meeting Friday, Asustek Chairman Jonney Shih (
) said his company had held “informal” internal discussions about acquiring HTC and he would not rule out the possibility of a takeover.
In a filing with the Taiwan Stock Exchange on Monday, however, HTC said it had not contacted Asustek and would not consider such an acquisition.
“As an international brand, HTC will continue to design world-class innovative smart devices through its pursuit of brilliance brand promise,” the Taoyuan-based company said in its statement.
Sales of HTC’s Desire Phones Top 1 Mil. in Taiwan in 1 Year
HTC said Tuesday that sales of its Desire family have topped 1 million units in its home market over the past year as the company has invested more in the mid-tier market.
The 1 million Desire phones sold in Taiwan between May last year and April this year — including the mid-range Desire 816, Desire 820 and Desire 826, as well as the entry-level Desire 626 — indicates that the low-cost featurerich smartphone range is gaining popularity among local consumers, HTC said in a statement.
Jack Tong ( ), president of HTC North Asia, told a press briefing Tuesday that 70 percent of the smartphones sold in Taiwan are priced under NT$10,000 (US$323), and that the Desire range will meet consumer demand in this price band.
Despite recent setbacks in HTC’s operations, the company’s shipments to the Taiwan market increased by 50 percent yearon-year during the first half of 2015, ranking the company as Taiwan’s best- selling smartphone brand between March and May, Tong said.
He also said he expects HTC’s high-end product line to gain momentum in Taiwan in the third quarter before the anticipated launch of Apple Inc.’s next-generation iPhone.
HTC said June 5 that it had lowered its second-quarter sales forecast to NT$33 billion-NT$36 billion from its previous estimate of NT$46 billion-NT$51 billion made April 28.
HTC also said it expects a net loss of NT$9.7-NT$9.94 per share for the April-June period, a revision from an earlier earnings forecast of NT$0.06-NT$0.34 per share, citing lower-than-expected global demand for high-end Android devices and the company’s weak sales in China.
HTC shares closed down 5.86 percent at NT$78.7 Tuesday in Taipei trading.