Investors Puzzle Over HTC: Biggest Winner in U.S., Big Loser Globally
November 28, 2011 9:04 AM
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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
12/4/2011 6:50:17 AM
I enjoyed the irony of the above post posting twice, due to a bug in this site.
Maybe you should spend more time sorting glitches like that out rather than turning your spam filter up to 11?
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