Cher Wang apologizes for disappointing performance


CNA

TAOYUAN–The chairwoman and chief executive officer of HTC Corp. (���F�q) apologized to shareholders Tuesday for the Taiwanese smartphone maker’s disappointing performance recently.

In her opening remarks at HTC’s general shareholders meeting, Cher Wang (������) apologized for what she described as an overly conservative marketing strategy and poor operations management efficiency.

Those deficiencies led to HTC’s disappointing performance recently in the fiercely competitive market landscape and to its poor share price, she admitted.

Wang promised that HTC will launch a ��hero product�� in its smartphone lineup in October and make significant improvements in innovation in the company’s next-generation flagship phone in 2016 to strengthen HTC’s product portfolio.

She also pledged that HTC will take steps to reduce its production costs, optimize its supply chain and outsource orders as appropriate to increase operational flexibility.

In addition, HTC will seek to ��rationalize internal procedures�� and develop new businesses such as virtual reality applications, including the Vive virtual reality headset that was developed jointly with U.S. video company Valve and unveiled on March 1, Wang said.

��I’m optimistic about HTC’s outlook and development. I believe we will have promising prospects if we choose and focus on developing the right products,�� the chairwoman told hundreds of shareholders.

Wang’s apology came after HTC shares took a beating on Monday, falling to a 12-year low of NT$97 (US$3.14) at one point after its suppliers reportedly cut their 2015 shipment forecast for the flagship HTC One M9 smartphone by 30 percent.

Her remarks seemed initially to boost investors’ spirits, as the stock rebounded on Tuesday to the day’s high of NT$100 at 9:24 a.m.

But they were apparently not enough to instill lasting confidence, with HTC shares falling 0.51 percent to NT$97.5 as of 10:40 a.m. before moving slightly higher.

At a conference call with analysts on April 28, HTC projected lower-than-expected revenues of NT$46 billion to NT$51 billion for the April-June quarter of 2015, with earnings per share of NT$0.06 to NT$0.34.