Apple and Samsung Flying as HTC struggles to Lift Off.
HTC was once a high roller with high volumes of sales with their Android devices but has had a bad year in sales results and reported weak fourth quarter sales. As Apple and Samsung are cornering the Taiwanese smartphone manufacturer, an even tougher first quarter has been forecast for them.
HTC’s reports show that they have generated revenue upwards of 101.42 billion Taiwan dollars, which converts to $3.48 billion USD with earning of 10.94 billion Taiwanese dollars, or $369 million USD. This is good for 13.06 Taiwan dollars – 44 cents USD - per share.
In the first quarter, HTC said it was expecting to rake in revenue between 65 billion and 70 billion Taiwanese dollars or $2.20-2.37 billion, which would mean that they would have suffered as much as a 36 percent drop from the previous quarter.
HTC was expected to generate $89.64 billion or $3.04 billion – per the analysts guesses - in revenue this quarter. HTC had previously released unaudited results for the fourth quarter but the forecast had instigated concern for HTC as it looks to regain its momentum.
HTC stated that the disappointing forecast was due to its transition to newer products, which will be previewed at the Mobile World Congress. HTC officials insist that the slowdown is “temporary”.
“Our weakness in first-quarter guidance also comes from facing competition in the U.S. in the forms of iPhone and Samsung,” said HTC Chief Financial Officer Winston Yung during a conference call “Also, LTE handsets did not meet our expectations” he added.
HTC did not provide unit shipment data for the first quarter – this is the first time it has refrained from doing so – they also declined to forecast unit sales for the first quarter.
HTC is set to apply more focus to its line-up and so it hopes to see improving sales.
See Part 2