Times of Oman2
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
HTC fourth-quarter profit below expectations
January 05, 2014 , 1 : 13 pm GST
SAVE THIS ARTICLE
Customers look at HTC smartphones in a mobile phone shop in Taipei July 30, 2013. Photo - Reuters
Taiwanese smartphone maker HTC reported a worse than expected net fourth-quarter profit on Sunday, despite aggressive cost cutting and a one-time gain.
The company reported net profit of T$0.3 billion ($10 million), compared to a net loss of T$2.97 billion ($99.9 million) in the previous quarter and profit of T$1.01 billion ($34 million) in the same quarter of 2012.
The figure lags expected net profit of T$721.71 million ($24.3 million), according to Thomson Reuters I/B/E/S.
The number highlights how quickly problems have piled up at a company that just over two years ago supplied one in every 10 smartphones sold around the world.
The company, which has lost nearly three-quarter of its market value in the last two years, is now worth about $4 billion, dwarfed by rivals like Apple and Samsung Electronics Co Ltd.
New management installed in the last quarter to tackle that slide must persuade customers the brand can still stand for stylish, feature-loaded phones, while keeping a lid on development costs.
Despite its latest flagship product, the HTC One, garnering rave reviews, the company's global share of the smartphone market has declined to a mere 2.2 percent in the third quarter of 2013 from a peak of 10.3 percent in the third quarter of 2011, data from research firm Gartner show.
While the company's recent "Here's To Change" campaign has seen an advertising revamp featuring "Iron Man" star Robert Downey Jr., analysts remain skeptical about the firm's ability to differentiate its brand image in a highly-saturated playing field.
The company has embarked on a cost-cutting campaign that includes buying its chips from cheaper vendors and outsourcing production. It also sold its stake in headphone brand Beats Electronics LLC, booking a one-time pre-tax profit of T$2.5 billion ($85 million), which would be recorded in the fourth quarter.
Shuttered factories, a wave of executive departures and top-level reshuffling are symptoms of what industry insiders see as the company's biggest problem: connecting with consumers.
Rate this Article
Rates : 0, Average : 0
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter Image Text:
No Comments Posted
Latest in this section
Facebook adds new feature for finding ‘Nearby Friends’
Weibo valued at $3.46 billion after bottom-end IPO pricing
The fall of the tech giants: What if Facebook collapses?
Heartbleed bug may hit millions of Android-powered smartphones
U.S. government says hackers trying to exploit 'Heartbleed' bug
TOP RATED ARTICLES
Baying Blues - Muscat government hospitals grappling with lack of parking areas
Faisal Mohammed Naim
Faith for Duty - onboard HMS Somerset F82
Admiral Robin K. Dhowan elected navy chief after deadly submarine fire
Real Madrid beats Barcelona by 2-1 in the Copa Del’ Rey (Kings Cup) final
Times News Service
Reports of e-cigarette injury jump amid rising popularity, U.S. data show
More in News
More than just a moustache - Adolf Hitler vs Charlie Chaplin
Urban gardens greening Berlin rooftops, airfield
Italian violinist strikes a chord with street children
Tips for writing a good article
How to choose your writing form and communicate your creative thoughts
Natasja Engholm - Special to Times of Oman
More in Features
Target the companies that pollute most
Assaad W Razzouk
Turkey must take the lead role to end conflict in Syria
Attempts to remake Eden are dangerous
Efforts on to wash off Japan’s war crimes
Middle East, Muslim world losing battle of hearts, minds
Aijaz Zaka Syed
More in Columns
Get Top news by E-mail.
Copyright © 2012 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial