World’s one of the leading manufacturing companies, pioneer in Taiwan HTC experienced a sharp fall in shares- about 10% down slide. It happens due to the poor revenue and weak growth outlook. All this came from a point- a quarterly report. Yes, according to the report published recently, HTC reported a record quarterly loss. In last three months HTC experienced 8 bn (Taiwanese Dollar) losses. Management pointed out to the poor marketing strategy and pricing the products without proper market research.
HTC’s Strategy and Competitive Market
HTC has been known for quality smartphone manufacturing. But in recent days it has been facing stiff competition from the Chinese rivals as well as biggies like Samsung and Apple. Apple is up for its IOS 9 release. All these reason stumbled upon shares and it went down by 10% in a single day! (That is the maximum allowed in a day). They have tasted a bitter down fall- lowest since the February 2005!
Job Cut- Immediate Affect of the Loss
Job cuts are one of the prime ways to cut expenditure. HTC is going to discontinue some of its models and will likely to focus on the high end models only. It is likely to implement six sigma and other efficiency measures to reduce all around operation costs across the organization and will work on to endure proper utilization of resources.
HTC’s Poor Performance in China
In a statement announced by the management-
“HTC’s poor performance is because of the poor sales of the HTC phones in China where Chinese rivals have eaten up maximum market shares of HTC”.