Beleaguered HTC prays for merger after first quarterly loss

13 years ago

“Taiwan’s HTC Corp slid into the red for the first time in the third quarter, adding to the case for the troubled smartphone maker to abandon its prized independence and reach out for a white knight soon,” Michael Gold reports for Reuters. “Like other strugglers in the sector, HTC has been laid low by the product and marketing might of Apple Inc and Samsung Electronics Co Ltd – woes that have been exacerbated by supply chain constraints and internal turmoil.”

“But where Nokia Oyj has fallen into the arms of Microsoft Corp and Blackberry Ltd is now in play with one disclosed offer and another being considered, HTC has stuck to its guns that it is not for sale despite what analysts call an increasingly bleak outlook,” Gold reports. “HTC posted a quarterly operating loss of T$3.5 billion ($120 million) on Friday as sales tumbled by a third from a year earlier.”

“Responding to growing speculation about a possible merger, Cher Wang, HTC’s low-profile chairwoman and co-founder, has repeatedly ruled out selling the company and has said a low share price did not bother her,” Gold reports. “Chief Executive Peter Chou’s abrasive management style and weak strategic vision have played their part in the company’s decline, according to a interviews with a dozen former and current HTC executives. Chou has declined to be interviewed, but in response to Reuters queries, the company said: ‘HTC’s board and broad employee base remain committed to Peter Chou’s leadership.'”

Read more in the full article here.

MacDailyNews Take: They remain committed to riding the rusty hulk right into the bottom with Chou at the helm when they should have ballmerized him years ago.

The [iPhone] design is quite weak; it’s very, very basic… [HTC has] a huge advantage. – HTC CEO Peter Chou, September, 2007