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Tuesday, November 05, 2013
HTC Expects Q4 Dip

Taiwanese smartphone maker HTC forecasts its revenue to drop further and believes the way up is in regaining market share in the mid and low-end.

For the fourth quarter of 2013, the company expects its revenue to be in the range of NT$40 billion to NT$45 billion. This compares with revenue of NT$47 billion in the third quarter, when it recorded a net loss at NT$2.97 billion.

Gross profit margin is forecast to be unchanged at around 20 percent. This compares with a 20.4 percent margin in the third quarter, when it sold its stake in Beats Audio for US$265 million to focus on its own proprietary sound technology, HTC BoomSound.

The company said during an investor briefing on Tuesday that it would be looking at broader products in this quarter, referring to more affordable smartphones. The company will also outsource some manufacturing to other firms and split its design and manufacturing arms.

HTC's phone have been deemed too expensive in some markets. Chialin Chang, CFO of HTC, pointed out there were other factors just as important to consider besides price, such as a fast time to market.

The release of the company's flagship HTC One handset was delayed earlier this month, partly due to manufacturing issues.

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