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Shares of HTC jump on arrival of products in U.S.

2012/05/22 16:19:38

Taipei, May 22 (CNA) Shares of Taiwan-based smartphone supplier HTC Corp. jumped on the Taiwan Stock Exchange Tuesday after U.S. telecom operator Sprint announced HTC EVO 4G LTE, one of HTC's high-end models, will be available to customers around May 24, dealers said.

Many investors were relieved at the Sprint announcement, particularly as market sentiment had been badly affected by a delay of HTC shipments to the U.S. due to a customs review, dealers said.

Shares of HTC rose 6.02 percent to NT$431.50 (US$14.63) with 15.72 million shares changing hands, while the weighted index closed up 1.14 percent at 7,274.89 points.

On its blog, Sprint said it expects "to begin shipping HTC EVO 4G LTE for arrival on or around Thursday, May 24 to customers who pre-ordered the device online from Sprint."

Market analysts said the announcement released in the U.S. overnight prompted many investors to resume buying in HTC shares, taking advantage of a recent slump amid concerns over its sales for the second quarter due to the shipment delay.

On May 16, HTC said shipments of its HTC One X and EVO LTE devices had been delayed due to a customs review requested by the U.S. International Trade Commission (USITC).

The customs review came after the USITC ruled in December that HTC had infringed on one of Apple's patents involving data detection.

The Taiwanese smartphone vendor was given until April 19 to come up with an alternative design to avoid a ban on imports and sales of its products equipped with the function in the U.S. market.

HTC said it has worked around its design and is in compliance with the ruling. It said it will cooperate fully with U.S. Customs.

In a statement released Sunday, HTC said some of its smartphones have passed the customs review and have been released to its carriers' customers.

With the U.S. market expected to account for about 30 percent of HTC's total sales for 2012, the availability of its products there will dictate the company's performance, according to analysts.

They said it was no surprise that HTC shares staged such a strong showing Tuesday after the Sprint announcement.

(By Stacy Wu and Frances Huang)
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