Taiwan's HTC sees first loss since 2002 listing
Taiwan's HTC said on Friday it had swung to its first net loss since listing in 2002, as it struggles to gain foothold in the highly competitive smartphone market.business Updated: Oct 04, 2013 15:50 IST
Taiwan's HTC said on Friday it had swung to its first net loss since listing in 2002, as it struggles to gain foothold in the highly competitive smartphone market.
The firm reported a net loss of Tw$2.97 billion ($101 million) in July-September, compared with a net profit of Tw$3.9 billion in the same period last year. It made a net profit of Tw$1.25 billion in April-June.
Sales also fell 33 percent year-on-year to Tw$47.05 billion, it said.
The weak figures come despite the company's efforts to turn around its fortunes with the launch of its HTC One flagship smartphone and a huge marketing drive.
The firm has been struggling against fierce competition from international rivals, and second quarter net profit plunged 83 % from last year due to higher costs and inventories.
According to research firm IDC, the Taiwanese firm held a 4.6 % share of the global smartphone market in 2012, sharply down from 8.8 % a year earlier. Samsung held a 30.3 % stake while Apple had 19.1 %.
As part of its efforts to boost sales, the company has planned a range of mid-tier smartphones later this year as analysts warn of waning demand for high-end gadgets.
HTC has also enlisted Iron Man star Robert Downey Jr to front its marketing and enhance its global brand.
As well as selling its own smartphones, HTC makes handsets for a number of leading US companies and supplies Google's Nexus One.