International Data Corporation (IDC) has forecast that struggling Taiwanese smartphone maker HTC will start to recover in the fourth quarter. IDC is an American market research firm specializing in information technology, telecommunications, and consumer technology.
HTC shares have lost more than 60% in market value so far this year. Following continued lackluster sales of its flagship handsets, HTC announced on Thursday that it will reduce its global workforce by 15%. The reduction will be part of a business realignment plan that includes the establishment of new business units to create profitable growth in premium smartphones, and virtual reality and connected lifestyle products.
An official with IDC, Sean Kao, said on Friday that smartphone sales suffered this year because of weak demand from China. He also said the emergence of Chinese smartphone brands is eroding the market share of not only HTC, but also Samsung and Sony.
Kao said that while HTC products are of good quality, the company must improve its marketing and sales channels. He also said that sales should pick up in the fourth quarter, which is traditionally a high season for mobile phones.