Smartphone maker HTC Corp (宏達電) yesterday gave a lower-than-expected sales forecast of between NT$46 billion and NT$51 billion (US$1.49 billion and US$1.6 billion) for this quarter despite the launch of the firm’s flagship model One M9 last month.
The forecast represents quarterly growth of between 10.78 percent and 22.83 percent from last quarter’s NT$41.52 billion, which is lower than the market consensus estimate of 50 percent quarterly growth.
“Our intention is to have sequential growth this year,” HTC chief financial officer Chang Chia-lin (張嘉臨) told an investors’ conference in response to the relatively low figures.
HTC expects earnings per share to slide to between NT$0.06 and NT$0.34, from last quarter’s NT$0.43.
The company’s net income totaled NT$360 million last quarter, reversing a loss of NT$1.88 billion in the same period last year. On a quarterly basis, net income plunged 28 percent from NT$500 million.
Gross margin for this quarter is expected to grow to between 23 and 23.5 percent from 19.7 percent last quarter, the firm said.
HTC plans to enhance marketing for the non-smartphone segment and expects sales from non-smartphone products to be meaningful next year, contributing about 10 percent to total sales, Chang said.
HTC launched its first non-smartphone product — action camera HTC RE — in September last year and then unveiled the Grip professional fitness tracker wristband and the Vive virtual reality headset at the Mobile World Congress in Spain last month.
Grip and Vive represent the next steps in HTC’s diversification into the connected lifestyle space, a strategy that leverages the firm’s strengths in design and technology to extend the firm’s reach to consumers, HTC said in a statement.
Chang said that the company will continue to increase investments in research and development for non-smartphone products this year.
“What we are trying to do is to not just be known as a smartphone brand, but a lifestyle brand. We want to be a brand to connect with the world,” Chang said.
Commenting on HTC’s strategy in emerging markets, Chang said the firm is optimistic about the booming smartphone market in India, adding that HTC recently launched the flagship One M9 in India and does not rule out seeking a local assembly partner in the nation.
Chang said that apart from Taiwan and China, HTC also plans to roll out online stores in India and other South Asian countries, as well as Hong Kong and some European countries this year in a bid to increase the exposure of HTC’s products.
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