(Adds background, analyst comment)
* Q2 net T$2.26 billion vs forecast T$2.17 bln
* Rev T$65.06 bln vs guidance range T$65 bln-T$70 bln
TAIPEI, July 3 Taiwanese smartphone maker HTC
Corp on Thursday reported an 80 percent rise in
second-quarter net profit from a year ago, slightly beating
analyst expectations, as a turnaround strategy started to stem a
decline in sales.
April-June net profit reached T$2.26 billion ($75 million)
versus a T$2.17 billion mean estimate of 17 analysts polled by
The result compared with a T$1.88 billion loss in the
previous three months and T$1.25 billion profit in the same
quarter a year earlier.
HTC has struggled to retain its market share against
competition from the likes of Apple Inc and Samsung
Electronics Co Ltd, as growth in high-end
smartphones slows worldwide.
To return its global share to 10 percent from the current 2
percent, HTC has released flagship model One M8, extended its
range of mid-tier handsets and increased its marketing budget.
Revenue was T$65.06 billion in the second quarter, compared
with a guidance range of between T$65 billion and T$70 billion
given in May.
Shares of HTC ended up 0.4 percent ahead of the earnings
release, in line with a rise in the benchmark index.
Global growth in smartphone sales is likely to be 23 percent
this year, against 39 percent last year, according to researcher
IDC. Average growth from 2013 to 2018 will be 12.3 percent, IDC
The prospect puts increasing pressure on high-end smartphone
makers to establish distinctive brands, which some analysts say
HTC has struggled to do.
The likely release in coming months of a new iPhone from
Apple as well as and the proliferation of low-priced
feature-packed models in China will add to HTC's challenges,
said analyst Richard Ko of KGI Securities.
Only significant inroads in a new product category such as
wearable devices - where HTC plans to partner Google Inc
- could bring the company the high-growth rates
experienced just a few years ago, Ko said.
"Every year there's a new 'hero' product release and a
quarterly uptick, but it often fizzles quickly," Ko said ahead
of the earnings release, referring to the March launch of the
One M8. "This year the competition is even more fierce."
(Reporting by Faith Hung and Michael Gold; Editing by David