HTC reports almost 30% monthly drop in December sales

Taipei-Sales of Taiwanese smartphone brand HTC Corp. fell almost 30 percent in December from a month earlier amid continued fierce competition in the global market.

In a statement Friday, HTC said it posted NT$4.02 billion (US$136 million) in consolidated sales in December, a drop of 29.01 percent monthly and 37.25 percent year-on-year.

It was the company's third consecutive monthly decline in consolidated sales and it second-lowest monthly sales figure in 2017, after it posted NT$3 billion in August.

HTC said the December sales drop was due to escalating competition in the global smartphone market and short supply of its "transparent black" U11 Plus model, which was launched in November.

The company's efforts to diversify its product offerings by venturing into the virtual reality business have not made any significant impact on its sales data.

Despite the global market launch of its first VR headset -- the HTC Vive -- in 2015, HTC's consolidated sales fell by an annual 20.52 percent last year to NT$62.12 billion. The Vive went on global sales in April 2016.

In the third quarter of 2017, the company posted a loss per share of NT$3.8, reporting a net loss for the 10th straight quarter.

This year, however, HTC is expected to post first-quarter gains of NT$30 billion from the disposal of part of its smartphone ODM operations to Google Inc., according to market analysts.

The company is also likely to get a boost from the release of its mid-range U11 Eyes smartphone later this month, analysts said.

On Friday, shares of HTC dropped 0.53 percent to close at NT$75.20, underperforming the broader market, where the weighted index gained 0.29 percent to end at 10,879.80.

Source: Focus Taiwan News Channel