Taiwanese smartphone maker HTC has fallen into a state of turmoil as a result of industry shifts and declining sales.
The company’s stock has hit a record low at 94 per cent below its April 2011 record high of NT$1,238.10 per share. Its shares have dropped rapidly, going as far as hitting the maximum daily limit of 9.9% at the Taiwan Exchange, leaving it at NT$83.60 a share.
Back in 2013, HTC reported its first annual loss, and it barely averted a repeat of the same scenario this year, as the company reported its first quarterly rise in turnover since 2011 and a moderate operating profit in January. This was due to some success that it managed to achieve with its mid-range phones.
HTC’s stock has hit a record low at 94 per cent below its April 2011 record high
This Friday, however, HTC announced a revised forecast for its second-quarter revenue, cutting the original projection by over 30 percent. The company cited stiff competition and weak sales in the Chinese market as well as low overall demand for high-end smartphones as the reason behind the cut in its projected earnings.
HTC’s first flagship smartphone for the year, the One M9, was launched in March, when the company’s stock was at NT$136 per share. The phone failed to sustain, let alone reverse, the company’s stock value. Back in 2011, HTC sold one in ten smartphones worldwide and was known for its creative design and high-end, low-cost hardware. The company’s market share is currently less than 2 percent, as a result of which it has been compared to BlackBerry, the floundering Canadian smartphone company that was once in an industry leading position.
HTC M9 has failed to sustain, let alone reverse, the company’s stock value
Analysts are now predicting share price to drop even further to as low as NT$57. According to them, the primary hurdle faced by the company is the increasingly crowded smartphone market, where survival is no longer dependent on only being able to make good hardware. HTC is apparently working on a new product that would act as a savior for the company, but hardly anything is known on that front. Meanwhile, CEO Cher Wang appears to be quite positive about the company’s outlook.
The reason is very simple no body is interested in Heavy Brick piece of junk Htc smart-phones.
HTC = PTCL. Because both have the same problem, not look at the public what they want.
Htc also made another mistake this year, they threw exactly the same phone they gave us last year, and just strapped a new label. Now this resulted in the fact that the people who bought the older m8 dont feel the need to upgrade to the “newer” m9 as they are EXACTLY the same!
Its like saying that you buy a watch which is quite expensive then a few years later, the company straps a new label to the same watch and tells you its better. Although it has the same design,material and the only thing that changes is the battery.
Every HTC smartphone has a premium look, that’s why, I like its design. But I think the main reason it always flops due to its pathetic battery and overprice.
pathetic battery??
one of the best hardware and performance still owned by htc.
Phir Bhi Flop!
not flop though…
(on the design front) when M8 was launched it was considered perfect design wise but other things like Camera and Battery life were areas of concern where it needed to improve so what they did this time around with M9 was that they kept the design almost the same cuz “if ain’t broken, don’t fix” (actually there is nothing wrong with the design)
but still they were not able to captalize because I think that they do not have deep pockets to Market their products properly like Samsung does. . . that’s where they need to focus. . . . I still think that after Apple HTC is only company which can give tough time to Samsung.
this company always faces problems.
i think its time for them to move into new industry.
I remember the htc which is actually hitech computers produce good hardware and build quality but looses their share and enter into mobile market and their focus is same which once nokia had.
HTC just like its past. they will move into new industry. the company’s problem is poor management , less resources and pathetic market research.
My first two smart phones were HTC and then I switched to Nexus 5. I think HTC is quite a good phone the only problem with them is no or maximum one android update after phone launch plus their marketing side is very weak…
Exactly!They are not marketing as much as other cellular companies are.
i bought htc explorer some years ago ..still using and working fine .. their don’t give low level budget phones..i think that is reason behind stock down
HTC <3 The only Brand that is reliable, GUI,FormFactor etc 10/10 for HTC
They should focus on low budget phones.
Samsung = Ufone