HTC posts record-low quarterly profit after delayed phone launch

TAIPEI Mon Apr 8, 2013 2:11pm IST

HTC president Jason Mackenzie shows the new HTC One during a launch event in New York, February 19, 2013. REUTERS/Brendan McDermid/Files

HTC president Jason Mackenzie shows the new HTC One during a launch event in New York, February 19, 2013.

Credit: Reuters/Brendan McDermid/Files

Related Topics

Stocks

   

TAIPEI (Reuters) - HTC Corp reported a record-low quarterly profit on Monday that missed analysts' estimates after it delayed the full launch of its 2013 flagship smartphone model, which will now debut against Samsung Electronics' newest Galaxy.

A shortage of cameras meant HTC managed to introduce its latest HTC One phone in just three markets by the end of the first quarter instead of the planned 80. It does not expect to kick off sales across Europe, North America and the Asia-Pacific region before the end of April.

Samsung Electronics Co Ltd (005930.KS) has said its Galaxy S4 will be available in 155 countries by the end of April.

HTC said its unaudited net profit was T$85 million in its January-March first quarter, compared with T$1 billion in the prior quarter and T$10.9 billion in the same period last year. It was the lowest since HTC began reporting quarterly profits in 2004.

The Taiwanese smartphone maker was expected to post a net profit of T$467.5 million, according to the average forecast of 18 analysts polled by Thomson Reuters I/B/E/S.

First-quarter revenue was T$42.8 billion, lower than the T$50-60 billion range that HTC had forecast in February. Revenue in the fourth quarter was T$60 billion.

"As HTC failed to establish its brand image by selling its most important flagship phone on time, it'll be very difficult to push on the mid- and low-end phones when HTC launches them in Q3-Q4," said Dennis Chan, an analyst with Yuanta Securities in Taipei. "Sales in the second quarter will bounce, but they will lose momentum again in Q3-Q4."

GRAPHIC: HTC earnings link.reuters.com/gas27t

The company has partnered with Facebook Inc (FB.O), which unveiled new software last week called "Home" that replaces the home screen on some Android smartphones, and introduced a $100 HTC-made handset that is pre-installed with the new app.

"The Facebook phone is not enough to turn HTC around," said Daiwa analyst Birdy Lu, speaking before HTC's results were released. "Facebook Home could be only good for Facebook addicts, and the distribution channel for HTC First is very limited. HTC's 2013 performance is still highly dependant on HTC One."

HTC was the world's 10th-biggest smartphone maker by shipments in the fourth quarter, according to IT research firm Gartner, jostling in a crowded field behind the top-two heavyweights Samsung and Apple Inc (AAPL.O).

Shares of HTC have lost more than half of their value in the past 12 months, underperforming a slight rise in Taiwan's main TAIEX index.

On Monday, HTC shares closed down 2.2 percent before the earnings were released, compared with a 2.4 percent fall in the main index. (Reporting by Clare Jim; Editing by Chris Gallagher and Emily Kaiser)

FILED UNDER:

Reuters Showcase

Legal Complaints

Legal Complaints

Government's payday from telecoms auction could be delayed  Full Article 

Running State Banks

Running State Banks

India signals private-sector bosses could run state-owned banks  Full Article 

India Forecast Raised

India Forecast Raised

S&P raises India's GDP forecasts, says it's a bright spot in Asia  Full Article 

StanChart CEO

StanChart CEO

StanChart picks ex-JPMorgan exec Winters as CEO to replace Sands  Full Article 

Wockhardt Plant

Wockhardt Plant

Wockhardt says FDA raises new concerns about Waluj plant  Full Article 

Banking Sector

Banking Sector

State-owned banks' capital needs may be higher - RBI deputy  Full Article 

Shares Sale

Shares Sale

Bharti Airtel says raised $310 mln through share sale in tower unit  Full Article 

Inflation Target

Inflation Target

India should meet RBI inflation target by Jan 2016 - RBI deputy  Full Article 

International Exchange

International Exchange

NSE plans to set up international exchange in Gujarat  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage