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.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion