HTC’s June sales up over 93% from May on new phone launch

Taipei, HTC Corp., a Taiwan-based smartphone brand, said sales in June rose more than 90 percent from the previous month through the launch of new mid-range models.

HTC posted consolidated sales of NT$1.46 billion (US$46.95 million) in June, which were up 93.89 percent from a month earlier but still down 34.46 percent from a year earlier.

The high month-on-month increase in sales largely reflected the smartphone brand's unveiling of its latest two mid-range smartphone models -- the U19e and Desire 19+ -- which carry starting price tags of NT$14,900 and NT$9,900, respectively.

The two models were the first new smartphones HTC has introduced this year.

According to HTC, smartphones priced at around NT$10,000 account for about 40 percent of the company's total sales in Taiwan, and the two new models are aimed at an expected wave of replacement demand in the near future.

The month-on-month increase in sales also reflected HTC's efforts to market its 5G mobile smart hub unveiled at the 2019 Mobile World Congress (MWC) in Barcelona in late February, the company said.

Despite the spike in sales in June, HTC still reported a 63.05 percent year-on-year decline in consolidated sales in the first six months of the year to NT$5.75 billion amid stiff competition in the global market.

While HTC entered the virtual reality market by launching the first VR headset Vive in 2015 and follow-up models later, the business continues to account for only a small fraction of the company's sales, analysts said.

In 2018, HTC posted a net profit of NT$12 billion, compared with a net loss of NT$16.91 billion in 2017, ending a three-year losing streak, while HTC's consolidated sales for the whole of 2018 fell 61.78 percent from a year earlier to NT$23.74 billion, the seventh straight year of decline.

The company reported earnings per share of NT$14.72 in 2018, compared with a loss per share of NT$20.58 the previous year.

The 2018 upturn was attributed primarily to a one-time profit booked on the US$1 billion sale of HTC's smartphone ODM assets to Google Inc., which boosted HTC's EPS to NT$25.70 for the first quarter.

In the first quarter of this year, HTC posted a net loss of NT$2.46 billion for the quarter and a loss per share of NT$2.98, but that was an improvement from a NT$5.27 loss per share in the previous quarter.

Source: Focus Taiwan News Channel