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Xiaomi misses 2015 target of 80M phones by 10M, but expands to UAE, Saudi Arabia

Lei Jun, founder and CEO of China's mobile company Xiaomi, speaks at a launch ceremony of Xiaomi Phone 4, in Beijing, July 22, 2014. China's Xiaomi unveiled on Tuesday its new flagship Mi 4 smartphone, aimed squarely at the premium handset market dominated by Apple Inc and Samsung Electronics Co Ltd. REUTERS/Jason Lee (CHINA - Tags: BUSINESS TELECOMS SCIENCE TECHNOLOGY LOGO) - RTR3ZN52

Xiaomi has announced that it sold over 70 million smartphones over the course of the entire 2015 fiscal year. The company didn’t state exactly how many smartphones were sold, but it has improved on its 2014 total by around 10 million units. It’s not all positive for Xiaomi though, it missed its own 80 million projection set for 2015 which itself was reduced from an original target of 100 million…


HTC is now effectively worthless following stock dive


HTC‘s stock has taken such a dive in recent months that, this morning, the company’s market value is now less than the cash it has on hand. In its most recent earnings, the Taiwanese manufacturer stated that it had NT$47.2 billion (New Taiwanese Dollar) cash. Today, its market price dropped to NT$47 billion, effectively making the company worthless to shareholders.

Originally reported by Bloomberg, this is a pretty damning turn of events for HTC. One analyst from Sinopac Financial Holdings stated that “HTC’s cash is the only asset of value to shareholders.” So its other assets like buildings and factories are worth nothing. What’s more, investors clearly aren’t confident in the future of the company either. A feeling perhaps based on this year’s flagship model, the HTC One M9, being just a modest upgrade to last year’s all-metal smartphone. And also the fact that now, lesser-known Chinese manufacturers are on the rise and capable of producing competitive smartphones at much lower prices.

HTC’s approach to dealing with this almost-collapse is to cut costs by focussing on the high end of the market where margins are higher. It’s a bold move, and one that might backfire for the company. Especially if the next few flagship devices continue to lose out heavily to the likes of Apple’s iPhone and Samsung’s Galaxy series. In my mind, the solution would be to ensure it has fewer items in its inventory and ensure supply doesn’t massively outweigh demand like it does currently.

How this turns out for HTC isn’t something easily predicted, but right now, it’s not looking so good for the company that once churned out hits like the popular Evo handset in 2010.

HTC nets $21 million profit in third quarter, beats estimates but sales down


For the third quarter, HTC has announced that it earned $21 million in profit on revenue of $1.37 billion. Although this is a huge improvement over the hundred million dollar loss they reported in the year-ago quarter, the company remains in a shaky financial situation. Most of the return to profitability is accounted for by a drastic cost-cutting policy rather than increases in device sales.

Sales actually fell 8% in September year-on-year, following a 33% fall in July and a 10% improvement in August. Apple and Samsung remain fierce competition for the Taiwanese company, despite good hardware advancements in the HTC One M8.