Will HTC’s Performance Finally Improve?

27 Oct

HTC said Tuesday said that its losses shrank last quarter and that it is optimistic about its virtual reality and smartphone businesses. “We are happy with the sales [momentum] last quarter and this quarter. We are expecting to see a good seasonal demand during Christmas,”HTC president of smartphone and connected devices business Chang Chia-lin was quoted as saying in the English-language Taipei Times.

The Taoyuan-based handset maker expects the HTC Vive’s momentum to extend into this quarter, while continuing to expand the VR device’s ecosystem and partnership in the industry, Chang said. “I cannot disclose the actual shipments of Vive, but I can say the number is much higher than the 140,000 units as some news reports said,” he said.

Chang said HTC has been reducing product lines for some of its less expensive smartphone models over the past few quarters as part of the company’s restructuring plan and that it will continue to reduce the number of smartphone models and shift the focus to higher-priced handsets. “The number of smartphone models next year will be fewer than this year,” Chang said.

Chang’s comments came after HTC reported a less-than-expected net loss for last quarter at NT$1.8 billion (US$56.94 million), an improvement from the previous quarter’s losses of NT$3.1 billion and NT$4.5 billion a year earlier. Yuanta Securities Investment Consulting estimated NT$2.58 billion in net losses and HSBC Securities forecast NT$2.63 billion in net losses.