HTC’s share price falls again – hits ten year low

We’ve run a variety of stories about HTC in 2015. A few of them have been about the Taiwanese handset maker’s new devices, but it seems that we’ve mostly been covering stories about the company’s share price sliding into oblivion, and having to cut orders for components. Sadly, that trend is continuing today, with the news that HTC’s share price dropped yet again, this time to NT$68.50 ($2.21) at the close, another new record low.

As you can see from the chart above, HTC’s share price fell 5.91% on Thursday thanks to over 17 million shares changing hands. The current NT$68.50 ($2.21) share price is a long way from when HTC was known as the ‘King of Android‘ back in 2011 when its share price reached a value of NT$1300 ($42).

This latest drop is down to HTC’s recent announcement that its preliminary earnings reports shows the company will make a loss of NT$8.03 billion ($256 million) before taxes in the second quarter off a revenue of NT$33.01 billion ($1.07 billion). In basic terms, HTC is losing $24 dollars out of every $100 it brings in. It should be noted that these numbers are unaudited, things could improve once the final figures are in.

Why is HTC struggling like this? Well, there are a number of factors. Firstly, its One M9 flagship smartphone is struggling for sales, and while China’s economy is slowing somewhat, its indigenous handset makers are providing stronger competition. After its share price fell to a record low last month, HTC was left fending off rumours that its local rival, ASUS, were about to take it over. HTC’s Chairwoman, Cher Wang, also ended up apologizing to shareholders for the slump in performance.

Hopefully, HTC’s management can pull the company away from the imminent iceberg that awaits the company if it carries on this path. The release of a new ‘Hero’ handset in October could well be the device to save the company, at least, we hope it will. Or, if you are a pessimist, it could be the one to finish them off.

Source: ChinaPost
Via: PhoneArena

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