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      HTC expects Q4 revenue drop, plans to cut costs

      2013-11-06 10:40 Global Times Web Editor: qindexing
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      Taiwan-headquartered smartphone maker HTC Corp said on Tuesday it plans to slash costs by nearly a quarter and sell cheaper devices in a bid to bounce back to profit in October-December.

      Under pressure in a market dominated by Apple Inc and Samsung Electronics, the company warned revenue for the fourth quarter will fall up to 15 percent from the previous quarter, slipping below analysts' estimates.

      The company said during an investor briefing on its outlook on Tuesday it expects fourth-quarter earnings per share of just NT$0.10 to NT$1.70 ($0.003 to $0.058), having sunk to its first-ever quarterly net loss of NT$3.58 per share in the previous three months.

      The company is struggling to bolster what research firm Gartner estimates is a 2.6 percent share of the global smartphone market with its flagship One series.

      Officials said during the briefing that company will keep its operating expenses low in October-December at around NT$10 billion, 24 percent below the previous quarter's NT$13.1 billion. They didn't say exactly where savings would be made.

      That would represent a switch from previous strategy. HTC has previously said it is aiming to capture 20 percent of the high-end smartphone market in the Chinese mainland. But according to research firm IDC, nearly 60 percent of second-quarter smartphone shipments in this market came from models that cost $150 or less.

      The company's woes have led it to suspend production lines and shutter factories. The company will also split its design and manufacturing arms.

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