HTC ex­tends gains on July sales, share buy­back

The China Post - - LOCAL -

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

Lo­cal Mar­ket

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.

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