HTC share price recoups earlier losses caused by poor December sales


CNA

TAIPEI–Shares of Taiwan-based smartphone brand HTC Corp. (宏達電) recouped earlier losses to close in positive territory Friday in line with the broader market, which staged a rebound from an early low, dealers said.

The earlier losses incurred by HTC were a reflection of a poor sales report for December, when its latest mid-range HTC One A9 — unveiled in October — failed to continue to make a great contribution to the company’s revenue, the dealers said.

HTC shares rose 1.04 percent to close at NT$77.80 (US$2.34) on the Taiwan Stock Exchange, when the weighted index ended up 0.53 percent, as investors here took cues from gains posted on the China market due to Beijing’s suspension of a stock market trading halt mechanism.

After the local bourse opened, the stock encountered heavy selling, down more than 7 percent at one point to the day’s low of NT$71.60, before bargain hunting emerged, triggered by a rebound staged by regional markets, in particular the China market, to vault the stock into the black by the end of the session, the dealers said.

A day earlier, HTC reported NT$6.52 billion in consolidated sales for December, down 36.6 percent from the previous month and down 57 percent from a year earlier.

Market analysts said the HTC One A9 failed to boost HTC sales, as demand for the model has been on the decline, while the smartphone vendor did not launch new models to stimulate buying interest in the month. In November, the HTC One A9 lifted the company’s sales to a six-month high.

In the fourth quarter of last year, HTC’s consolidated sales totaled NT$25.75 billion, up 20.3 percent from a quarter earlier. For the entire 2015, the smartphone brand posted NT$121.68 billion in consolidated sales, a new low in eight years, down 35.24 percent from a year earlier.