HTC shares slide as patent dispute delays US shipments
Shares of Taiwan's HTC have fallen after US customs officials held up shipments of its new smartphones.
In December, HTC was found guilty of infringing a patent held by Apple and there is a ban on the sale of any HTC phones in the US that use technology involving that patent.
HTC said that it had altered its technology and design, but that the shipments still require inspection.
Its shares dropped 6.6% to close at NT$411 on the Taiwan Stock Exchange.
"The US availability of the HTC One X and HTC EVO 4G LTE has been delayed due to a standard US customs review of shipments that is required after an International Trade Commission exclusion order," the firm said in a statement.Setback
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We believe we are in compliance with the ruling and HTC is working closely with customs to secure approval”
The Taiwanese firm, which was one of the early leaders in Android-powered smartphones, has been hurt by increasing competition in the sector.
Last month, it reported that its first quarter net profit had dropped by 70% from a year earlier.
It also said revenues had fallen by 35% during the period, raising concerns that it was fast losing out to rivals such as Samsung and Apple.
In an attempt to regain its market share, the firm announced the launch of the new models earlier this year.
Analysts said that the delay in the shipment of these models was a setback for the firm as it was likely to hurt sales in one of its key markets and result in the competition gaining more ground.
However, HTC said it was trying to resolve the issue with the authorities.
"We believe we are in compliance with the ruling and HTC is working closely with customs to secure approval."