Despite the launch of its newest high-end flagship smartphone, HTC Corp’s (宏達電) revenue last month plummeted 38.66 percent to NT$13.54 billion (US$439.95 million) from NT$22.07 billion a year earlier.
On a monthly basis, the figure fell 32.36 percent from March’s NT$20.02 billion.
Analysts attributed the poor revenue figure to disappointing sales of the HTC One M9, which hit the market last month.
“Revenue for last month was weaker than expected, which was due to poor M9 demand,” a Yuanta Securities Investment Consulting Co (元大投顧) analyst, who declined to be named, told the Taipei Times.
“HTC might have underestimated the Qualcomm Inc S810 processor’s thermal issue, and this has resulted in poor reviews and concern from carriers,” the analyst said.
He said he estimates M9 shipments this year would reach only 4.5 million units, down between 35.71 percent and 43.75 percent, compared with the 7 million units and 8 million units reached by HTC’s previous flagship models, the M7 and M8.
At a recent investors’ conference, HTC gave a sales forecast of between NT$46 billion and NT$51 billion for this quarter.
Based on the firm’s sales for last month, that means HTC has to make NT$32.46 billion in the remainder of the quarter to reach the low end of its sales guidance.
A KGI Bank analyst, who declined to be named, said that he thinks the likelihood of HTC reaching the low end of its sales guidance for this quarter is low.
“Based on our channel checks, retailers have been lowering the M9’s price in order to attract consumers’ attention. This reflects a negative market reaction to the flagship,” the analyst said by telephone.
Last month’s launch of the M9’s variants, the M9 Plus and E9 Plus, might help sales pick up mildly this month and next month, the analyst said.
HTC’s revenue totaled NT$55.06 billion for the first four months of this year, down by 0.24 percent from last year’s NT$55.19 billion.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RSS