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HTC under pressure to find a partner
04 October 2013
Taiwan's HTC slid into the red for the first time in the third quarter, adding to the case for the smartphone maker to abandon its independence and seek a partner, reports Reuters.
Like other strugglers in the sector, HTC has been laid low by
the product and marketing might of Apple and Samsung –
woes that have been exacerbated by supply chain constraints and
Nokia has fallen into the arms of Microsoft and
Blackberry is now in play but HTC has continued to state that
it is not for sale.
HTC posted a quarterly operating loss of T$3.5
billion ($120 million) as sales tumbled by a third from a year
earlier, underscoring a dramatic decline for a company which
boasts award-winning smartphones but has failed to develop a
durable brand image.
"Fundamentally there are a lot of things that need
to be fixed," said Laura Chen at BNP Paribas, adding that HTC
needed to work on marketing, supply chain management and
streaming its product line. "No sign of recovery anytime
HTC's troubles have pushed its shares down some 55%
for the year to date and sparked calls for the company to
consider a radical overhaul. A JPMorgan note in July called for
the company to look at merging with China's Huawei
Huawei has since said it is not planning to acquire
another smartphone maker to grow its market share.