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.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
RSS