Taipei, Taiwan-based smartphone brand HTC Corp. reported on Friday that its sales for June fell more than 60 percent from a year earlier with market analysts attributing the decline to escalating global competition.
In a statement, HTC said it posted NT$2.23 billion (US$73.11 million), down 67.64 percent from last year. The June figure was also down 8.97 percent from the previous month.
It was the fifth consecutive month HTC has failed to generate monthly revenue of more than NT$3 billion.
In the first six months of the year, HTC's consolidated sales stood at NT$15.56 billion, down 49.25 percent from a year earlier.
Analysts said the latest sales showed HTC's efforts at developing its virtual reality business have failed to provide a real boost to revenue as VR operations account for only a small fraction of the company's total sales.
HTC entered the VR business in 2015 with its first VR headset -- The Vive -- and launched global sales in April 2016, in an effort to diversify its product portfolio and increase sales to offset the adverse impact of escalating competition in the global smartphone market.
On Monday, HTC announced it will lay off 1,500 employees in its manufacturing division in Taiwan by the end of September to optimize the company's resources through a "strategic adjustment of its workforce."
The number to be laid off account for about one quarter of HTC's existing workforce of 6,450 worldwide.
Xincheng International Investment Consultant analyst Chang Chih-cheng said on Monday soon after HTC's layoff announcement that the steep cut in the workforce at its manufacturing division makes it unlikely that HTC's sales will improve anytime soon.
In the first quarter, HTC posted a net profit of NT$21.1 billion, compared with a net loss of NT$9.8 billion in the previous quarter, with earnings per share of NT$25.70.
However, the first quarter results, which ended 11 consecutive quarters of losses, were boosted by a deal in which the company sold its smartphone ODM assets to Google last year.
Excluding one-time non-core business gains from the asset disposal, HTC's core business still incurred a first quarter operating loss of NT$5.2 billion.
In 2017, HTC incurred a net loss of NT$16.91 billion and a loss per share of NT$20.58, the highest since it listed on the Taiwan Stock Exchange in March 2002.
Source: Focus Taiwan News Channel