HTC Corp (宏達電) yesterday blamed its expanding quarterly losses, which grew to NT$2.6 billion (US$84.18 million) last quarter, on the lack of traction for its new blockchain phone and virtual reality (VR) headsets.
It lost NT$3.1 billion in the third quarter of last year, while it posted losses of NT$2.1 billion for the second quarter of this year.
The smartphone maker has been locked in a spiral of quarterly losses for about three years, except for the first quarter of this year, when it booked net profit of NT$21.1 billion after selling its handset manufacturing team to Alphabet Inc’s Google for US$1.1 billion.
HTC is still struggling to return to the black, although its operating losses narrowed to NT$2.8 billion last quarter.
It posted operating losses of NT$3.4 billion for the second quarter and NT$3.3 billion a year earlier, company data showed.
Its operating margin dipped to minus-68.9 percent last quarter from minus-50.7 percent in the second quarter, compared with minus-20.9 percent in the third quarter of last year.
Its gross margin improved for a second straight quarter to 4.7 percent from 2.7 percent in the second quarter, but was still down from 10 percent in the same period last year.
Revenue plunged to NT$4 billion from NT$6.8 billion in the previous quarter and NT$15.7 billion a year earlier.
HTC said it would continue to invest in research and development as well as on expanding its VR ecosystem.
It launched the mid-range HTC U12 life last month and is to start shipping its first blockchain phone Exodus 1 next month.
HTC is accepting pre-orders for the Exodus 1 in cryptocurrencies only, at the price of 0.15 bitcoins, or 4.78 ethers.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS