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Friday, 20 September 19:43 (GMT -05:00)



Stock and commodities markets

HTC Cuts Smartphone Production by 20 Percent due to Low Demand


Taiwanese producer of smartphones HTC reduces production of the devices. One of the company’s four production lines is stopped; it releases 20 percent of the volume of all smartphones. Shortage of production is connected with low demand for HTC smartphones, as informed by “Hi-tech” Department of the “Market Leader”.

HTC money flow is reducing. Production volume has reduced on average by 1 mln. smartphones per month, and total capacity currently amounts to 4.5 mln. devices per month. This May HTC smartphone of flagman series One has entered the market. First month’s sales were very active, but already in June results started falling and have appeared at 26.4 percent lower than primary results.

HTC company, which used to have high perspectives, has failed to enter TOP-5 of largest producers of mobile devices. It has been left too far behind the leaders of the segment, namely, Apple and Samsung Electronics.

During the third quarter of 2013 the company has gained the quarterly loss of 2.97 bln. Taiwanese dollars (101 mln. US dollars). The company’s earning has reduced by 33 percent, thus amounting to 47 bln. Taiwanese dollars (1.6 bln. US dollars).

According to the experts of Forex Trend (Forex Trend is a current leader of Masterforex-V Academy rating of forex brokers ), in order to find the way out from such tight situation the company is to undertake something in the nearest future. The shares of HTC company are falling.

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