Shares of High Tech Computer Corp (HTC,
HTC, the world's biggest manufacturer of handsets that use the Microsoft Corp operating system, said sales rocketed 45 percent compared with September last year to NT$8.89 billion (US$269 million), bringing revenues for the July-September period to NT$26.36 billion.
Although HTC said the third-quarter results were "in line with" expectations, the company's stock price plunged 6.77 percent to NT$813 on the Taiwan Stock Exchange yesterday, as investors and industry analysts had anticipated a better performance.
Shares of the nation's top handset maker, Compal Communications Inc (
HTC's sales for last month were "7 percent lower than our expectation of NT$9.5 billion," Vincent Chen (
The mobile phone maker blamed disruption in the supply of small thin-film-transistor liquid-crystal-display (TFT-LCD) panels for the weaker-than-expected growth in sales, Chen said.
HTC said short supply in component sales eroded sales by 5 to 10 percent last month, but it hoped to resolve the problem this month.
With the situation expected to extend into this month, Chen yesterday cut his forecast for HTC's revenue in the final quarter of the year by 7 percent to between NT$35 billion and NT$36 billion, from an earlier estimate of NT$39 billion.
Nonethless, Chen retained his "buy" rating on HTC, saying demand was still strong, and that HTC was adding new customers.
"HTC has added two new customers in the US. Shipments could start as early as the fourth quarter of 2006," Chen said, adding that panel supplies were no longer an issue.
HTC now supplies cellular phones to some of the world's biggest telecom operators, including Vodafone and Softbank Corp.
Lu Chia-lin (呂家霖), a handset industry analyst at Yuanta Core Pacific Securities (元大京華證券), said he did not plan to adjust his "buy" rating on HTC in the short term.
Lu said the decline in HTC's share price surprised him.
"I did not expect investors to react strongly to lower-than-expected September sales. I think the weakening stock price just offers a good chance for people to buy HTC shares," he said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
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