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HTC shares recoup earlier losses caused by poor sales

HTC shares recoup earlier losses caused by poor sales

Taipei, Jan. 8 (CNA) Shares of Taiwan-based smartphone brand HTC Corp. 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 said it 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.

Investors remained cautious about HTC's bottom line, expecting that the company will continue to report a net loss for the fourth quarter.

In the first nine months of last year, HTC incurred NT$14.68 in loss per share, and the fourth-quarter results are scheduled to be released at the end of January or early February.

HTC is gearing up to develop products in the virtual reality arena and has announced that its first VR headset -- the HTC Vive -- will hit store shelves in April, in a bid to secure an alternative sales source to offset the impact of slowing global demand for smartphones. (By Esme Jiang and Frances Huang)

Updated : 2021-10-29 05:56 GMT+08:00