Uh oh, HTC is tumbling down - its share price hits a ten-year low
Uh Oh. No, we are not going to talk about the eponymous device protection plan that HTC launched two months ago; it just so happens that "uh oh" perfectly characterizes the current financial situation of the troubled smartphone manufacturer.
Uh Oh, indeed. Just a few days ago it became clear that HTC is once again bleeding all over and is about to post a totally disappointing financial report for the second quarter of the year. Unlike the one for Q1 2015, which was fairly profitable, the second quarter reported truly showed that the hole in HTC's boat is bigger than ever.
As a result of all these, HTC's shares have plummeted to their lowest levels for the last decade. After last month's anti-record, each of the company's 17.30 million shares currently sells at NT$68.50, roughly $2.21, which is almost on par with its market performance in March 2004. Provided that the current downward trend keeps its plummeting momentum for several days more, we won't be surprised to witness a new anti-record for the distressed manufacturer, which might quite possibly record its lowest share pricing ever.
That being said, the risk of capsizing is real and the culprit to blame is, undoubtedly, the HTC One M9, a device that performs rather poorly on the market. Add this to the slightly stagnant market and you get a recipe for a market disaster, at least for HTC. The flagship-grade devices that it released on a weekly basis just recently and threw at the vast Chinese market are one way to up your profits.
Yet, we will have to wait to see if the effect of this marketing strategy will be overwhelmingly positive or just the contrary.
Fortunately, the high-ranking management over at HTC's HQ is aware of the problems the company is facing. As a result, a change in the company's product portfolio is expected later this year - the upcoming "hero" phone will certainly be imbued with HTC's hopes of turning the tides, but would this be enough to help it get back on its feet?