Bloomberg News

HTC Heads for Two-Month Low as Net Drops by Record

April 09, 2012

Visitors try out HTC Corp. mobile handset devices near an HTC Sensation XL, in foreground, at an HTC store in Taipei. Photographer: Ashley Pon/Bloomberg

Visitors try out HTC Corp. mobile handset devices near an HTC Sensation XL, in foreground, at an HTC store in Taipei. Photographer: Ashley Pon/Bloomberg

HTC Corp. (2498) fell to the lowest in two months in Taipei trading after the smartphone maker posted its biggest profit drop since listing a decade ago.

HTC dropped 6.8 percent to NT$545 at the close today, the lowest since Feb. 7. Taiwan’s benchmark Taiex Index (TWSE) declined 1.4 percent.

First-quarter net income tumbled 70 percent from a year earlier to NT$4.46 billion ($151 million), HTC, Asia’s second- biggest maker of smartphones, said April 6. The average of 17 analysts’ estimates compiled by Bloomberg was for profit of NT$4.62 billion.

Revenue at the Taoyuan, Taiwan-based company fell 35 percent to NT$67.8 billion amid competition from Apple Inc. and Samsung Electronics Co. That compares with the NT$71.1 billion average of 22 analyst estimates compiled by Bloomberg and HTC’s own projection of NT$65 billion to NT$70 billion.

To contact the reporter on this story: Adela Lin in Taipei at alin95@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net


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