HTC Quarterly only "qualified", the takeover rumors

Absrtact: The past two years for HTC, the use of suffering to describe is not too. Nokia has changed its name, Sony has retreat, and there are still few international brands in the Chinese mobile phone market. which can be priced at more than 3500 yuan, in addition to Connaught for the past two years for H T C, with "suffering" to describe is not too.

Nokia has changed its name, Sony has retreat, and there are still few international brands in the Chinese mobile phone market. The price of the product can be set at more than 3500 yuan, in addition to Nokia and Samsung, the remaining HTC.

For the last two years, for H T C, it's not too hard to describe. The generation, the brand-name smartphone maker, experienced a loss of more than a year, eventually turning a profit in the second quarter of 2014, with net profits approaching $100 million trillion. In the past third quarter, H T C is still profitable. The financial statement used a very clever word------------------------------ In this regard, H T C has not been fully bailed out. And over the past year, there has been talk of H T C being sold, seemingly volatile. However, the head of H T C, Wang, who is known as "woman Jobs", is the chairman of Granville Electronics (V IA) and HTC International (H T C).

Quarterly only "qualified", the acquisition of rumors again

Not long ago, T C Group Chairman Li on his own certified microblog, hope to join hands with H T C against Apple and Korean manufacturers. The message was then interpreted as "T CL wants to buy H t C". In spite of the quick clarifications of two companies, it also reflects the industry's view that H T C's "sell" seems sensible, at least in the sense that it looks more plausible than the takeover of Apple or Samsung.

This situation is closely related to the performance of H T C over the past two years.

At the end of last month, H T C released its third quarter of 2014 earnings. The content shows that the H T C revenue for this quarter is 41.9 billion NT dollars (about 1.375 billion USD), fell 11% per cent, net profit after taxes of NT $600 million (about 19.69 million US dollars), a loss of $102 million in the same period last year, and an after-tax surplus of NT 0 78 yuan (about 2 cents). Gross margin of 22.9%, operating rate of 0.4%.

Prior to that, H T C had experienced several consecutive quarterly losses until the second quarter of 2014. It is noteworthy, however, that the quarterly H T C net profit of 2.26 billion NT dollars (about 74.17 million U.S. dollars), far more than just released the third quarter (USD 19.69 million). Although a handful of international brands can take the high-end line of representatives, but the profits of the three quarter of Samsung (about 4 billion U.S. dollars) or Apple (8.5 billion U.S. dollars) performance, there is still a big gap.

Continue to buy in the smartphone industry chain

From the H T C three quarterly results, gross margin is not low, but sales are not high. Because there is no low-end super low-end smart machine product line, so this performance means that H T C product sales are not high. In fact, in a number of third-party agencies in the market share of research reports, whether in the global or mainland China market, H T C in 5.

The high-end brand, the plate is not a Big Mac level. H T C is a good choice for domestic companies struggling to be displaced for years on the road to the brand. In addition to the outgoing by T C L acquisition, as early as last year, the market has been Lenovo to buy H T C rumors. At that time Wang personally denied, and to the South reporters clearly said "H T C is not for sale." Later, it was confirmed that Lenovo eventually extended an olive branch to Motorola ——— a brand with a lower-end, smaller plate, but at a loss.

As a member of a PEC business Advisory council, Wang also appeared in a PEC scene recently. She did not continue to respond to the possibility that H T C would be taken over by the takeover, but instead switched to an "offensive" gesture. "We will continue to buy in the smartphone industry chain to bring the most cutting-edge technology, the best content, to the fastest speed to consumers." Wang said in an interview that H T C is the company that spends most of his mind "care" and is the best position to exert his ideas of "changing the World with innovation".

Performance up or down? Calmly view the four quarter

In fact, as early as last year, Wang was interviewed by the South have already expressed similar meaning, H T C for her to have the taste of dream. Another h T C insiders to the South reporters that in the Wang involved in various industries, H T C is not a large volume of the part. Even before a long loss, Wang had no intention of selling it, and now even more so.

The industry's views are mixed as to whether the future of H T C is a relapse into a loss spiral or a continuation of the first two quarters of the performance.

Regarding the fourth quarter of 2014, H T C in the three quarterly report notes, "annual flagship H T CO NE (M 8) and the midrange model H T C D Esire series in the increasingly competitive smartphone market to maintain stable sales, the city accounted for a rise in the last quarter of the sales." Looking to the quarter, revenue is expected to be about 43 billion-47 billion NT dollars (about 1.41 billion to 1.54 billion USD), with gross margin expected to be around 19% to 21% in the fourth quarter. ”

"The quarter has always been the sales season for smartphones, but the top products like the Samsung N OTE series and the Apple iphone are generally in the fourth degree," he said. Li Yuankei, an analyst with the consumer electronics industry in China, said that sales were roughly flat in the third quarter from the H T C earnings forecast, but that gross profit margins could fall by 2-3 percentage points. On the one hand may be the new model M 8Eye, D esireeye and Portable camera H T C R e will be listed, marketing costs will increase. On the other hand, H T C or will play "price difference", the main push the flagship products, and Samsung, Apple head-on competition, at the same time the price is higher than 2000 yuan this domestic brand together competitive price segment. In this case, sales will increase, but the gross margin will fall.

"Woman Jobs" Wang

Wang is called "Woman Jobs", because of its founder of the Granville and H TC two companies, a very short time in the scientific and technological community, which H TC or domestic brand is the only successful in the high-end market brand.

In addition to the "nickname" related to Jobs, Wang was also dubbed by the outside world "desperately three Niang", "Iron Wife" and other titles. But at the earliest, her more familiar identity was the daughter of Wang Yung-ching, the "God of Business in Taiwan". However, in various public data, the "rich second generation" of the growth process is full of "self-made" plot, such as the earliest time, Wang through the mortgage mother's house to buy the brink of the collapse of Granville Electronics.

At present, Wang, besides being the co-founder and chairman of the three Taipei companies including Granville, also holds numerous board management and advisory positions. H TC is one of the few companies she really participates in, and the maker of Smart terminals, which has been a brand-name manufacturer, has been overtaken by the market capitalisation of Nokia and has experienced a setback in performance. In the second half of last year, in the case of H TC consecutive quarterly losses, Wang return to management, making it gradually out of the dilemma began to profit. According to her, the only way to move forward is to lose the baggage successfully. As it turns out, H TC has not become the next Motorola or Nokia.

Brand Marketing Pioneering

In the country for the first time with the three major operators at the same time to launch a customized version of the three operators, H T C implementation of unprecedented. Even h T C first please Wang, May star endorsement, these "love music, understand the H T C" star and H T C positioning fusion, in order to highlight the H T C brand positioning.