Taipei, Jan. 22 (CNA) Shares of smartphone vendor HTC Corp. moved higher Tuesday morning after foreign wire services reported that the company will soon ship its Butterfly model to India and Russia, dealers said.
The stock outperformed the broader market on optimism that HTC's attempt to strengthen its presence in emerging markets will bolster its overall smartphone shipments, they said.
As of 11:31 a.m., shares of HTC had added 1.40 percent to NT$290.50 (US$10.02), with 7.10 million shares changing hands. The benchmark weighted index on the Taiwan Stock Exchange was up 0.32 percent at 7,749.80.
"The reports about shipments to Russia are driving investors to pick up bargains after HTC shares had consolidated in recent sessions," Hua Nan Securities analyst Stan Chang said.
On Monday, shares of HTC fell 0.52 percent to NT$286.50, while the broader market ended down 0.1 percent.
According to the reports, HTC is planning to sell the Butterfly phone, which has become a hit in Japan and Taiwan, in India at the end of January and in Russia in the near future.
The reports said the planned sales to India and Russia signaled HTC's growing ambition to introduce its products in more developing markets after several of its models, including the Butterfly phone, went on sale in Myanmar earlier this month.
HTC spokespeople were not immediately available to confirm the reported sales initiatives in India and Russia.
Chang said that with the broader market falling into a consolidation mode after a surge on Friday, investors were targeting stocks with positive leads, including HTC.
"But even if the plans about sales to India and Russia are confirmed by HTC, it remains to be seen whether the move into these developing markets will raise shipments for the smartphone vendor significantly in the short term," Chang said.
"I doubt the expensive Butterfly phone will be affordable to many consumers in India and Russia," he said.
The reports said the Butterfly phone will be priced at NT$27,000 in Russia and NT$24,000 in India.
Chang also said investors should keep a close eye on Apple Inc.'s fourth-quarter earnings due out Wednesday in the United States to get guidance from the U.S. consumer electronics giant on global demand.
"If Apple turns cautious about its shipments, it could also be negative news for HTC and other smartphone vendors," Chang said.
(By Chiang Ming-yen and Frances Huang)