HTC extends gains on July sales, share buyback
Shares of Taiwan-based smartphone vendor HTC Corp. (
) extended gains Wednesday morning from a session earlier after the company retained the title of top smartphone supplier in terms of sales volume in Taiwan last month, dealers said.
The current gains also reflected a newly unveiled program by HTC to buy back its own shares from the open market to show its determination to shore up its share price which had been hammered by lingering concerns over the company’s profitability after massive losses in the second quarter and a gloomy outlook for the third quarter, they said.
As of 10:46 a.m., shares
of HTC had added 3.95 percent to NT$46.10 (US$1.41) with 27.48 million shares changing hands. The weighted index on the Taiwan Stock Exchange was down 1.01 percent at 7,598.28 points.
The stock continued momentum seen a session earlier to open higher on the local main board Wednesday as investors took cues from the latest smartphone sales data in Taiwan for July. On Monday, HTC shares rose 10 percent, the maximum daily increase, to close at NT$44.35.
July Smartphone Sales Tops
According to industrial sources, HTC grabbed first place in smartphone sales volume in July, taking a 19.7 percent share in the Taiwan market. It was the second consecutive month for HTC to keep the title as largest supplier in Taiwan, showing that Taiwanese consumers still lent strong support to the brand, which has suffered escalating competition from foreign rivals not only in high-end smartphones but also in budget models.
Samsung Electronics Co. of South Korea came in second after taking an 18.3 percent share in July, ahead of Taiwan’s Asustek Computer Inc. with a 17.1 percent share, the U.S.-based Apple Inc. with a 13.2 percent share and Japan’s Sony Corp. with an 11 percent share.
In Taiwan, a total of 651,000 smartphones were sold in July, up 1.7 percent from a month earlier. Market sources said that the summer vacation failed to give a significant boost to Taiwan’s smartphone market, causing the local market to post anemic growth last month.
In terms of sales value, Apple ranked as the best seller in Taiwan in July, claiming a 35.2 percent share, on the back of its popular iPhone 6 and iPhone 6 Plus models, which have made their presence in the Taiwan market known for 10 months, the sources said. Samsung came in second with a 20.3 percent share, HTC with a 14 percent share, Sony with 12.7 percent share and Asustek with a 9.7 percent share, according to the sources.