HTC Boots CFO Responsible For Beats Audio Strategy, Stock Drops 6%

HTC’s shares have plummeted in response to changes in the Taiwanese company’s executive board as HTC announced that Chia-Lin, Chang, a former Motorola engineer and partner at Goldman Sachs in Taiwan will replace Winston Yung as the company’s new CFO. Shares dropped as much as 6% in response to the news of Yung’s replacement. Coupled with Samsung’s Galaxy S III announcement, the folks inside HTC must be a little nervous.

HTC did not give a reason for the change in their head office, but a change in the company’s CFO position often indicates that the company is looking to make some dramatic changes in the hopes of turning the tide. HTC faces extreme competition from outside competitors after having a fairytale ride in 2010 and early 2011 when its shares tripled in 14 months. HTC saw their stock end up as the worst performer among global smartphone manufacturers, down almost 42 percent at the end of 2011.

With Samsung’s Galaxy S III announcement looming, attention is bound to shift away from HTC’s generally well-received HTC One line. We can only hope that sales of the One line rebound HTC’s place in the US market prodding a much needed boost for them to stay successful in the Android market.

Reuters

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