The largest Taiwanese smartphone manufacturers HTC and ASUS all harder to get out of the crisis their phone business because of growing competition. This is stated in the DigiTimes portal publication with reference to industry sources.
On the Taiwanese market, the Chinese company Oppo outstripped HTC and took the fourth place in the list of the largest manufacturers of smartphones. The top three are Samsung Electronics, Apple and ASUS. Flagship model Oppo R11 became the best-selling Android-smartphone in the country according to the results of July 2017.
June revenue of HTC reached 6.89 billion Taiwan dollars (228.5 million US dollars), which was the highest monthly rate since the beginning of the year. This contributed to the release of the flagship HTC U11.
However, in July, the company's turnover decreased by 10% in monthly terms and by 2% in annual terms, since, apparently, the surge in sales of HTC U11 went down.
The interlocutors of the publication say that the second half of the year may be even harder for HTC, since the U11 model will be on the market for some time, and competitors represented by Apple, Samsung, LG Electronics, Huawei, Oppo and Xiaomi will introduce new flagship devices.
On the eve of, perhaps, a difficult season for HTC, rumors appeared in the media that the company would separate the business of releasing virtual reality devices and sell it.
As for ASUS, the company also faces serious problems, due to which the vendor's profit per share in April-June 2017 decreased to the lowest level for the last seven years - 2.7 Taiwan dollars. The transfer of the date for the announcement of the ZenFone 4 line from April to August.
ASUS lowered the forecast for smartphone shipments for 2017 from 20 to 15 million units.
Strong competition and other problems that accompany ASUS pushed the company to corporate reorganization and change of marketing strategy.
The reforms are aimed at improving the efficiency of the management system and accelerating the launch of new products. However, it is not yet clear whether structural innovations will help improve the situation in the telephone business, DigiTimes sources say..
The measures taken by the company should bear fruit in three or four quarters, the financial director of ASUS, Nick Wu, promised earlier,. According to the calculations of the company, revenue and profitability should return to growth, the earliest, in the second quarter of 2018, he added.