Sales disconnect

7 January 2014 By Ethan Bilby

The Taiwanese handset maker’s full-year loss raises fears it is following rivals into a downward spiral. HTC’s old strength was to focus on design and let others worry about marketing. A possible deal to make China Mobile-branded smartphones may be its best hope of a turnaround.

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Taiwanese smartphone maker HTC eked out a small post-tax profit in the fourth quarter of 2013 according to results published on Jan. 5, after aggressive cost cutting and a one-time gain for selling its Beats unit. The company reported net profit of T$0.3 billion ($10 million), but made an operating loss of T$1.56 billion.

Shares have fallen by some 5.9 percent since the announcement, trading at T$130.50 on Jan. 7 at 10:00 a.m. Taiwan time (0200 GMT). HTC has lost nearly three-quarters of its market value in the last two years.

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