HTC Beats Expectations, But Posts Troubling Outlook as it Eyes Chinese Growth
February 4, 2013 1:45 PM
New flagship smartphone "M7" and Chinese growth raise hopes for a turnaround
For embattled Taiwanese smartphone maker HTC Corp. (
fiscal Q4 2012
financials brought a bit of good news and a bit of bad news.
On the one hand HTC's profitability slide continued, with net profit dropping to NT$1B ($33.82B USD) -- or an earnings per share of NT$1.21 ($0.04 USD/share). On the other hand, that beat analyst predictions by over 20 percent.
of 17 analysts by
predicted earnings of NT$0.97 per share.
Quarterly revenue fell at NT$60B ($2.03B USD), slightly less than the analyst consensus of NT$61.7B. However, the a better-than-expected 23 percent gross margin and reduced operating margin of 1 percent drove up the profit slightly, despite the revenue miss.
HTC posted a troubling outlook for Q1 2013, though, suggesting revenue could dip as low as NT$50B. In Q1 2012, HTC pulled in NT$67.8B in revenue.
HTC Chief Financial Officer Chang Chia-Lin looked to cheer up analysts in the conference call,
plans to aggressively target the Chinese market with more affordable smartphones. HTC is one of the
fastest growing players
in the Chinese market, the
world's largest smartphone market
. However, price is an obstacle to its growth -- its cheapest model is 1,999 yuan ($320).
HTC wiill sell cheaper smartphones in China this year. [Image Source: Cult of Mac]
CFO Chia-Lin remarks, "We're going to go down, but not below 1,000. We see there's still room to play [in 1,000 to 2,000 yuan phones]."
A new flagship smartphone, code-named "M7" is also in the works. Expected to launch mid-month at events in New York City and London, the phone is rumored to feature a super-high resolution camera.
Overall Taiwan's stock market rose 12 percent in 2012. However, HTC's stock was pounded down 40 percent as revenue and profits slid downward. A major culprit is a
. While HTC is still a top tier Android phonemaker, it has fallen far behind Apple Inc. (
) and Samsung Electronics Comp., Ltd. (
) in brand image.
predicted similar Q1 slumps on weakening demand.
FT [analyst estimates]
"I modded down, down, down, and the flames went higher." -- Sven Olsen
Samsung Sets Profit Record, but Growth, Margins Suffer Slightly
January 25, 2013, 11:56 AM
Apple Earnings Worry Investors; Stock Falls 10 Percent
January 23, 2013, 7:06 PM
HTC's Disappointing Fourth-Quarter Earnings are Lowest Since 2004
January 7, 2013, 11:57 AM
HTC CEO Tells Investors That the Worst is "Probably" Over
January 4, 2013, 2:25 PM
HTC Aims For 1/10th of Chinese Smartphone Market by End of 2012
August 13, 2012, 11:35 AM
3 Budget LED TVs
December 7, 2016, 5:00 AM
How is the BlackBerry DTEK50 Doing Today?
December 6, 2016, 1:00 PM
Best Secure Android Mobile Browsers:
December 5, 2016, 7:24 PM
Latest News, this is how the Moto X (2017) might look
December 3, 2016, 9:02 AM
Fake Apple Chargers Fail Safety Tests
December 2, 2016, 5:00 AM
FlowMotion veils its new smartphone stabilizer, FlowMotion One
December 1, 2016, 3:00 AM
Most Popular Articles
What Can You Do with Your New Echo Dot?
December 3, 2016, 5:00 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Foscam R2 Home Security Camera System – High Quality High FHD Security Video Footage with No Monthly Fees
December 1, 2016, 2:00 AM
The iPlugmate is an Excellent iPhone Flash Drive at a Great Price. (Deal Expires in 3 Days)
November 23, 2016, 1:00 AM
Microsoft Surface – Which Surface is Right for You?
December 2, 2016, 5:00 AM
Latest Blog Posts
In The News
Dec 7, 2016, 5:00 AM
e Guide: Mobile Security for 2017
Dec 6, 2016, 5:00 AM
Apple Car is Not Dead
Dec 5, 2016, 1:00 AM
Dec 4, 2016, 5:00 AM
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
Foldable Cardboard ”EcoHelmet” wins James Dyson Award’s Top Prize
Nov 18, 2016, 2:39 AM
Scientists Discover Roundest Object Ever Spotted in Universe
Nov 17, 2016, 1:00 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information