03-08-2007, 05:30 PM
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Editor Emeritus
Join Date: Aug 2006
Posts: 5,074
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HTC February 2007 Sales Report, Total Revenue Down by 15% Compared to Last Year
"High Tech Computer Corp. (TAIEX: 2498) today announced its total revenues for February 2007 were NT$ 6,599 million, a decrease of 15.58% YoY, while total revenues from January to February 2007 were NT$ 15,005 million, a decrease of 3.36% YoY. The reasons for February 2007 lower revenues were lower sales momentum in the US region, low market visibility and decreased work hours in February (Chinese New Year). However, the 1Q07 revenue will close to the sales revenues of Q106 and the 1Q07 net profit margin before tax will maintain the same level of the same period of last year."
Is HTC having a difficulty maintaining its stellar sales momentum? Is its decision to brand and market the phones all by itself hurting it? i-mate is no longer buying units from HTC. Carrier sales is tough because of lower profit margins, even Motorola was recently affected by it. On top of all this, folks are delaying their purchase and waiting for the Windows Mobile 6 models. Lots of factors that can be attributed to this huge drop in total revenue. Given the products in the HTC pipeline, I am sure that they will be able to recover from this. At the same time, I would like to add this, HTC is now competing with the likes of Motorola, Samsung and LG for the carrier handset market. They cannot just keep churning out new models. They will have to build and maintain relationships with the carriers, which is not easy.
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