HTC's Future Uncertain Following Continuous Losses
Taiwanese smartphone maker HTC once again reported a quarterly loss and announced it would go quiet and will no longer give guidance for future quarters. "Given the dynamic nature of this business, we have decided not to provide that sort of detailed financial forecast," said HTC’s Chief Financial Officer and sales head Chialin Chang, on an earnings call Friday.
Mr. Chang said on the call that the move was aimed at avoiding "side effects." He reminded listeners of the detailed earnings warning that HTC gave ahead of its third quarter loss as an example of the company’s transparency.
Ms. Huang said HTC actually has no obligation to give guidance, and it previously volunteered a more specific forecast than many companies.
HTC struggles to turn around its business. The company was once one of the world’s top-selling smartphone brands, its devices lauded by reviewers for their exterior design and build quality. But HTC has found it difficult to adapt to the rise of Xiaomi, Huawei and other Chinese brands that compete ruthlessly on price while keeping advanced features.
In the third quarter, HTC incurred NT$4.5 billion (US$137 million) in net loss, compared with NT$8 billion recorded in the second quarter.
Judging from the results in the third quarter, Chang said that they show HTC has been making progress in strengthening its bottom line in a global smartphone market where competition has been on the rise.
Looking ahead, Chang said that HTC will likely benefit from the launch of its latest mid-range HTC One A9 model. The company is scheduled to start global sales for the HTC One A9 in November.
The market also expects HTC will find additional sales sources after its virtual reality (VR) headset HTC Vive goes on sale. The VR gadget could hit the market in December.