HTC foresees revenues of NT$50-60 billion, gross margin of 21-23% for 1Q13 operation

Erica Yen, Taipei; Adam Hwang, DIGITIMES [Monday 4 February 2013]

Taiwan-based smartphone vendor HTC has forecast consolidated revenue of NT$50-60 billion (US$1.7-2.0 billion), gross margin of 21-23% and net operating margin of 0.5-1.0% for its business operation in the first quarter of 2013, according to company CFO Chang Chia-lin at a February 4 investors conference.

HTC will make efforts to maintain its global market status for high-end smartphones while launch entry-level and mid-range models to cater customers switching from feature phones to smartphones for the first time in emerging markets, Chang pointed out.

As China has become the world's largest smartphone market, HTC will strengthen partnership with mobile telecom carriers and expand its retail chain there. Due to intensive competition, smartphones available in the China market are of shorter product life than in other markets, Chang said. Timely reduction in sales price is a strategy for extending product life, Chang pointed out. HTC has launched smartphones for sale at CNY1,999 (US$321) in the China market and will launch models priced at CNY1,000-2,000, Chang pointed out.

HTC: Financial report, 4Q12 (NT$m)
Item	Amount	Q/Q	Y/Y
Consolidated revenues	60,000	(14.5%)	(40.8%)
Gross margin	23.0%	down 2.1pp	down 4.1pp
Net operating profit	600	(87.8%)	(95.3%)
Net profit	1,000	(74.4%)	(90.8%)
Net earnings per share (NT$)	1.21

Source: Company, compiled by Digitimes, February 2013