HTC Posts Quarterly Growth, Helped By India Sales

06/01/2015 12:23 PM IST | Updated 15/07/2016 8:24 AM IST
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MUMBAI, INDIA OCTOBER 17: John Abraham at the launch of new HTC cell phone in Mumbai.(Photo by Milind Shelte/India Today Group/Getty Images

HTC Corp. posted a revenue growth in the third quarter as sales of its mid-range handsets rose in emerging markets and helped offset competition in higher segments.

The brand also did well in India, which contributed to the quarterly revenue growth, its first in three years.

Fourth-quarter sales climbed to NT$47.9 billion ($1.5 billion) from NT$42.9 billion a year earlier, HTC said today, the first gain since the third quarter of 2011. The Taiwan-based company reported net income of about NT$470 million, which beat average estimates of NT$212 million.

The results indicate that HTC's tablet and phone offerings in developing markets have clicked. It has managed to combat competition in lower-end segments that constitute bulk of the mobile market in countries such as India.

In India, HTC lags behind market leaders such as Samsung and Micromax, but had higher market share than low-cost rivals such as Xiaomi in the last quarter. "India is improving for HTC, but the rest of the world remains a major challenge," said Peter Lin, an analyst with research firm Strategic Analytics.

HTC signed Bollywood actor John Abraham for the launch of Desire Eye model in October. The company also partnered with North East United FC in the Indian Super League.

In October, HTC forecast fourth-quarter revenue of NT$43 billion to NT$47 billion while latest analyst estimates expected NT$45 billion. The company posted an operating profit of around NT$180 million for the quarter, compared with analysts’ estimates for a loss of NT$30.4 million.

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