HTC Declines to 17-Month Low in Taipei After November Sales Decline 20%
HTC Corp. (2498) declined to the lowest in 17 months in Taipei trading after consolidated sales fell 20 percent in November from a year earlier.
The stock dropped 6.6 percent to NT$428, the lowest level since July 5, 2010, at the close. The benchmark Taiex index rose 1.1 percent. The trading volume of 18 million shares was almost double the three-month daily average, according to data compiled by Bloomberg.
HTC’s consolidated revenue fell to NT$30.9 billion ($1 billion) in November, according to an e-mailed statement yesterday. The smartphone maker, based in Taoyuan, Taiwan, cut its fourth-quarter revenue forecast last month amid the slow global economy, increased competition and lawsuits by Apple Inc. (AAPL)
“HTC’s product offering is no longer ahead of its global peers, which is leading to muted shipments growth and market share decline in coming quarters,” said Richard Ko, an analyst at KGI Securities Co. He cut the share price target to NT$530 from NT$740 on Nov. 24 and maintained a “neutral” rating on the stock.
Revenue this quarter will be little changed from a year earlier, compared with an earlier forecast for growth of about 20 percent to 30 percent, HTC said Nov. 23.
The International Trade Commission is set to rule Dec. 14 in a patent complaint lodged by Apple against HTC. The decision was postponed from the original date of Dec. 6. A ruling for Apple may lead to a ban on U.S. imports of HTC devices.
To contact the reporter on this story: Janet Ong at firstname.lastname@example.org