Wed, Dec 07, 2011 - Page 12 News List

HTC revenue drops as competition in the US escalates

By Jason Tan  /  Staff Reporter

HTC Corp (宏達電), the world’s No. 4 smartphone brand, yesterday said its revenue declined 19.6 percent year-on-year to NT$30.94 billion (US$1 billion) last month, as Apple Inc’s new iPhone 4S ate into its market share in the US.

The figure also dropped 29.8 percent from the prior month.

HTC cut its fourth-quarter revenue outlook on Nov. 23 by forecasting sales would drop as much as 23 percent from the third quarter to NT$104 billion, compared with an earlier forecast of between NT$125 billion and NT$135 billion, given the global economic crisis and as rising competition from Apple and South Korea’s Samsung Electronics Co dent demand.

Revenue for the first 11 months totaled NT$439.43 billion, up 78.87 percent from last year, according to a company statement.

Meanwhile, the US International Trade Commission (ITC) said on Monday it was postponing a verdict on Apple’s lawsuit against HTC to next Wednesday instead of delivering it yesterday, as originally planned.

Apple has claimed that HTC smartphones powered by Google Inc’s Android mobile operating system violated its patents. If the commission rules in Apple’s favor, it would also have to decide if HTC’s products should be banned in the US.


Separately, Digitude Innovations LLC, a US-based consumer electronics licensing company, has filed a complaint with the ITC, accusing companies including HTC and its US subsidiary, Samsung, LG Electronics Inc and Sony Corp of violating patents relating to certain portable communication devices.

Digitude requested the ITC to conduct an investigation under section 337 of the Tariff Act of 1930 — an important means for the US to combat unfair practices in the import trade and especially for enforcing US intellectual property rights at its borders.

If imports are found to violate section 337, an exclusion order would be issued to the US Customs Service, banning these products from being imported into the US.

Additional reporting by CNA

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