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"The
cuts will be across the board," Chief Financial Officer Chialin
Chang told reporters after HTC reported a second-quarter loss
and forecast another for the third-quarter. "They will be
significant."
Chang said the cost reductions would extend to the first quarter
of next year, but declined to give further details.
A pioneer in early smartphones, HTC has been dismissed by
industry watchers as confused, unoriginal and uncompetitive.
The company has been losing market share over the past few
years, hit by intense competition at the high-end of the market
from the likes of Apple and Samsung Electronics while budget
Chinese rivals have also eclipsed its low-cost offerings.
HTC shares have fallen 51 percent so far this year. The stock
closed 1.69 percent lower before the results were announced.
Chang said HTC was banking on selling high-end models in
emerging smartphone markets such as India, where he said the
company has a 20 percent market share of phones priced between
$250-$400.
Analysts, however, are less optimistic, saying HTC is likely to
continue to struggle for the next four quarters at least.
"We believe HTC will keep losing share in the smartphone market
and will keep losing money," analyst Calvin Huang with Taiwan's
SinoPac Securities wrote in a recent research note.
(Editing by Miral Fahmy)
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