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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.

Read more: HTC Huawei Peter Chou

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 internal turmoil.

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 soon."

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 Technologies.

Huawei has since said it is not planning to acquire another smartphone maker to grow its market share. GTB

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