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Asustek mulling acquisition of HTC (update)

Asustek mulling acquisition of HTC (update)

Taipei, June 12 (CNA) Taiwanese PC maker Asustek Computer Inc. (??) said Friday it will not rule out the possibility of acquiring HTC Corp. (???), as the local smartphone maker is facing another quarter of operating loss. Asustek Chairman Jonney Shih (???) told the press after the company's annual general shareholders meeting that Asustek had held internal "informal" discussions about acquiring HTC. "Before making such a decision, however, Asustek will definitely consider the intentions of both parties and determine the correctness and overall synergy of such a strategy," Shih said, but he declined to elaborate. Shih said he thinks HTC is working on its own strategies to address its problems, and he hopes the company will succeed in turning its business around, which would encourage other Taiwanese brands. HTC declined to comment on Shih's remarks, saying only that it will continue to hold on to the spirit of "pursuing excellence and perfection" and release amazing products to promote HTC around the world. Shih's remarks came a week after HTC cut its sales forecast for the second quarter, citing lower-than-expected global demand for high-end Android devices and the company's weak sales in China. HTC lowered its second-quarter sales forecast to NT$33 billion-NT$36 billion (US$1.06 billion-US$1.16 billion) from its previous estimate of NT$46 billion-NT$51 billion, which was made April 28. The company also projected a net loss of NT$9.7-NT$9.94 per share for the April-June period, a revision from an earlier forecast of NT$0.06-NT$0.34 in earnings per share. HTC's smartphone shipments are likely to decrease from 21.2 million units to 17.9 million units this year, according to market analysts. In contrast, Asustek has forecast smartphone shipments of 17 million to 25 million this year, a leap from 8.5 million units last year. HTC shares closed up 0.66 percent at NT$76 Friday in Taipei, while Asustek shares fell 0.34 percent to NT$292. (By Jeffrey Wu)


Updated : 2021-09-29 05:52 GMT+08:00