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HTC pessimistic over Q4 profit

Publication Date : 27-10-2012

 

HTC, a leading Taiwan smartphone manufacturer, yesterday gave a downbeat assessment for its fourth-quarter operations, saying operating profit margin for the current quarter would be only 1 per cent.

The firm made the forecast during its quarterly investors' conference yesterday.

At the event, HTC reported third quarter sales of 70.2 billion Taiwan dollar, gross profit margin of 25 per cent, operating profit margin of seven per cent and net profit of $3.9 billion Taiwan dollar, which translated into earnings per share of 4.7 Taiwan dollar.

For the fourth quarter, HTC expects sales to be 60 billion Taiwan dollar, lower than the third-quarter figure. Gross profit margin for the current quarter would be 23 per cent and operating profit margin just one per cent.

HTC however maintained it will stick to product quality and give customers the best devices possible.

“Products, innovation, employees and partners are the most important assets that we have,” said Peter Chou, the chief executive office. “We anticipate to introduce cutting-edge designs and innovations to consumers.”

China has become one of the most important growth markets for the smartphone manufacturer, which will in the future work with prestigious brands on the other side of the strait to achieve growth and widen its reach, the firm said.

As for other regions, business is in line with expectations in the United States, where flagship products have received rave reviews. The HTC J phone meanwhile has received huge popularity in Japan and will, along with the HTC J Butterfly, serve as the growth driver in the Japanese market

*US$1= 29.34 Taiwan dollar

 

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