HTC’s shares plunge 7% on fears of Windows Phone 7 handset delays

HTC Windows Phone 7 handsets suffering glitches.Any idea that Windows phone 7 is not an important product for HTC should now go out of the window, with the company’s share price plunging 6.87 percent on fears their Windows Phone 7 handsets may be delayed due to “glitches in the Windows Phone 7 operating system”.

Investors had been relaying on strong shipments of new handset to reach their target of 8.8 million handsets shipped in Q4 2011 and also for the new handsets too boost the company’s margins, which have ben falling due to fierce competition.

"The market had expected that the company would post significant sales for the fourth quarter. But the technical problem dampened investor sentiment," Shih said.

HTC  has clarified that it had noted the problem and was taking action to resolve it, but traders were not reassured, dragging down the stock price during the rest of the trading day.

HTC’s share price closed at NT$624.00, the lowest level since Sept. 3.

Via Focustaiwan.tw.

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