A Slide in November Means HTC Needs to Step it Up to Stay in the Game
Even though HTC Corporation reported a record-breaking third quarter, not all is rosy at the Taiwanese company.
After a review of HTC’s unaudited November numbers, its recent fourth quarter sales forecast more than 20% cut may be a good thing, according to TechCrunch. The company said it came from the “global macroeconomic downturn,” but it also noted that heightened market competition led to an incorrect forecast.
The November report also disclosed close to a 20% revenue decline from NT$30.9 billion ($1.02 billion) as compared to 2010’s NT$38.5 billion ($1.27 billion). This could bring a halt to the company’s ongoing growth streak of six consecutive quarters.
With competition from Apple Inc. (NASDAQ:AAPL) and Samsung Electronics, what does HTC have to offer?
Its recent introduction of Verizon Communications Inc.’s (NYSE:VZ) HTC Rezound (previously the Vigor) wasn’t a state of the art addition but its slim size, 1.5GHz dual-core processor, 1GB of RAMs, 16GB of internal storage, 16GB microSD card and 8-megapixel camera could very appealing to users.
But one bright spot for the company may be that it stood as the United States’ no. 1 smartphone vendor in the third quarter, slightly ahead of Apple. However, the company may need to make some gutsy moves soon to stay in the conversation and the competition. Especially now that Microsoft (NASDAQ:MSFT) and Nokia (NYSE:NOK) are getting more aggressive. A company no longer simply say “We’re better than Research in Motion (NASDAQ:RIMM)!” and be a winner.