Nov 14 2013, 9:10am CST | by Triszia Marie Santos
HTC has had a tough year: first, facing some supply problems for the HTC One and then, lackluster demand for the HTC One mini and HTC One max. According to the Bloomberg, the company's most recent posted forward-looking earnings statement suggests that revenues of up to NT $45 billion for their fourth quarter, NT$7 billion short of Bloomberg analysts' NT$52 billion projection.
To make up for this shortfall, HTC is going to limit their operating expenses, although this is not very clear where these savings will be made. This will also introduce newer, cheaper smart phones to appeal to a broader audience, but it will not make an attempt at what HTC’s current CFO Chang Chailin called the "ultra low-end" market.
As well as entering the competitive mid to low-end phone race, HTC is now considering outsourcing production of their devices if it is financially advantageous to do so. HTC Corporation owns factories in both Taiwan and China, and in late October, the company has denied a Reuters report that suggested that HTC would sell these production lines, and some of which have allegedly been sitting unused since August.
HTC's profits will also get boosted by the finalized sale of its stake in Beats Electronics, the company which is behind the popular Beats portable audio devices. HTC Corporation originally had a 50.1 per cent share of Beats Inc. they bought for US$300 million in the year 2001, but the headphone and Speaker Company bought half of that back last year for just US$150 million and has recently completed the purchase of the second half for US$165 million.
Triszia Marie Santos
Triszia Marie Santos is navigating the mobile device space for you. She is an early adopter in all things mobile and loves to write about the latest mobile trends.
blog comments powered by Disqus
The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.
The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.
Read more about The Geek Mind.
News | Technology | Smartphones | Electronics | Person Career | Input/Output | Mobile phones | Company | MID | Phone | Photo | Portable | Projection | Sale | Ultra | Now | bad | Audio | image | Android devices | Taoyuan City | HTC Sensation | Report | Market | flagship | Stake | images | Earnings | Devices | trends | with | Supply | october | daily news | HTC One Mini | Files | Purchase | August | remove | Phones | profits | Statement | Device | Beats Electronics | New Device | Successor | Demand | Sell | Production | Introduce | Soon | End | save | Also | Max | Late October | Looking | Not | Behind | Working | Value | Just | Sites | Title | Fourth Quarter | See | Considering | Race