Taiwanese smartphone vendor HTC Corp (宏達電) is expected to enjoy sequential sales growth of up to 50 percent in the second quarter with the launch of its new flagship model and its ambitions to penetrate middle-range markets, KGI Securities Investment Advisory Co Ltd (凱基證券投顧) said last week.
KGI Securities said in a recent research note that the latest HTC One M8 and the middle-range HTC Desire 816, which were unveiled last month, should help the company’s sales increase 40 percent to 50 percent in the second quarter.
KGI said the significant sales recovery should also enable HTC to turn a profit in the current quarter after its gross margin improves.
At an investor conference on Feb. 10, HTC said its consolidated sales for the first quarter were likely to range between NT$34 billion (US$1.12 billion) and NT$36 billion, down from NT$42.9 billion in the previous quarter.
Because of the decline in sales, HTC projected a loss per share for the quarter of NT$2.1 to NT$2.6, compared with NT$1.21 in earnings per share in the previous quarter.
In the first two months of the year, HTC’s consolidated sales only totaled NT$16.9 billion, well off the pace of its first-quarter target.
However, analysts said the HTC Desire 816 has been warmly received in China, and the 5-inch HTC One M8 could attract fresh buying in the high-end market, which could help HTC meet its first-quarter guidance. HTC is expected to release last month’s sales data today.
Meanwhile, according to sources from distribution channels in Britain, HTC is planning to launch a smaller version of the M8 model with a 4.5-inch display next month. HTC declined to comment.