Investors Puzzle Over HTC: Biggest Winner in U.S., Big Loser Globally
November 28, 2011 9:04 AM
comment(s) - last by
Company's CFO says new flagship LTE models will launch globally in 2012, restore sales growth
If there's one of the Android superstars that's stumbled in the last few months it's been HTC Corp. (
). Globally the Taiwanese phone maker has seen its pattern of quarterly growth come to an end. Indeed, it
predicted zero growth
in Q4 sales, even as smartphone sales as whole continue to rise at a double-digit pace.
Chief Financial Officer Winston Yung brushed off the disturbing metric, commenting that HTC would overall show large growth from 2010 to 2011. He explains, "I don't think it's so serious. We have six quarters of improvement, the most conservative guidance is 45 million units of shipments this year, a lot higher than 25 million last year."
Investors apparently feel otherwise. They've hammered HTC's stock 32.5 percent downwards since November 16.
The plunge is frustrating for the company as it comes not long after HTC received a happy surprise,
finding itself topping
American firm Apple, Inc. (
) and South Korea's Samsung Electronics Comp., Ltd. (
) in Q3 2011 U.S. smartphone sales. HTC's strong performance in the U.S. was not entirely unexpected, but its top position was a surprise.
HTC also faces legal woes stemming from its battle with Apple. Last year it was the first Android phone maker to be attacked by
attacked by Apple in U.S. court
filed a counter complaint to the ITC in May
filed a second complaint
in June. Apple wants to ban all shipments of HTC smartphones into the U.S., the company's lone remaining bastion of strong sales.
On the legal front, HTC did catch a bit of a break, seeing a potential sales ban on its phones in Germany due to infringement of a patent from a firm called IPCom lifted when the patent involved was ruled invalid by the EU.
And HTC's Mr. Yung expressed confidence that upcoming brand new 2012 flagship models will right the ship for HTC. He comments, "We will focus on the product next year, better and more competitive. Other than new LTE phones for the U.S. market, we also have phones for the global market. We will launch some worldwide flagship products. We're confident in them."
HTC will need to show proof of its turnaround if it hopes to slow its falling stock, which is being unloaded by foreign institutional investors.
This article is over a month old, voting and posting comments is disabled
RE: They will sell more phones
11/28/2011 7:27:20 PM
I would run Sense if it didn't eat my Incredible's battery compared to CM7... I miss it, and every now and then I toss it back on the phone, but I always have to yank it back off because the battery just doesn't last as long as I need it to.
Sad really, because it Sense does make Android far nicer than it is by default, although I am interested to see what the ICS changes have in store for that concept.
"I f***ing cannot play Halo 2 multiplayer. I cannot do it." -- Bungie Technical Lead Chris Butcher
China is Now the World's Largest Smartphone Market
November 23, 2011, 4:10 PM
Apple Files Another Suit Against HTC, Looks to Crush Successful Competitor
June 23, 2010, 4:35 PM
HTC Fights Back, Suing Apple to Block Import of iPhone, iPad, iPods
May 12, 2010, 9:05 PM
Update: Apple Claims Invention of Multi-Touch, Phone CPU Undervolting, Sues HTC to Stop Sales
March 3, 2010, 8:15 AM
Quick Note: Moto X Gets Mad for the Month of March
March 7, 2014, 5:14 PM
Staples Closing 225 Stores Across North America
March 7, 2014, 1:24 PM
HP Launches $170, 8" Android Tablet
March 7, 2014, 8:09 AM
Sony Computer Entertainment America CEO Jack Tretton Stepping Down
March 6, 2014, 8:52 PM
Apple Won't Let UK Sons Unlock Their Deceased Mother's iPad
March 6, 2014, 12:44 PM
Benchmarks for NVIDIA Tegra K1 Hit the web
March 6, 2014, 8:57 AM
Most Popular Articles
Mt. Gox Bitcoin CEO Can't Stifle Grin as he Bows in Apology for Bankruptcy
February 28, 2014, 5:00 PM
Facebook Kills Popular Messenger App for PCs
March 1, 2014, 4:01 PM
Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings
March 5, 2014, 9:05 AM
Two More Microsoft Executives Leaving the Company
March 3, 2014, 4:38 PM
USAF Moves Forward With Long Range Bomber Program Despite Budget Crunch
March 4, 2014, 9:44 AM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information