HTC says cost cuts will bring it back to profit

 
City A.M. Reporter
SMARTPHONE maker HTC said yesterday it plans to slash costs by nearly a quarter and sell cheaper devices in a bid to bounce back to profit between this quarter.

Under pressure in a market dominated by Apple and Samsung Electronics, the company warned revenue for the fourth quarter will fall up to 15 per cent from the previous quarter, slipping below analysts’ estimates.

The company said during an investor briefing on its outlook yesterday it expects fourth-quarter earnings per share of just T$0.10 to T$1.70, having sunk to its first-ever quarterly net loss of T$3.58 per share in the previous three months.

Officials said that the company will keep its operating expenses low in October-December at around T$10bn (£211m), 24 per cent below the previous quarter’s T$13.1bn but did not say where savings would be made.