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HTC sees third quarter revenue down as much as 23%

Posted: , posted by Alan F.

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HTC sees third quarter revenue down as much as 23%
Despite launching its most acclaimed smartphone yet with the HTC One X, the Taiwan based firm continues to struggle in the marketplace. After a terrible second quarter, it looks like more of the same for HTC in Q3. The company has announced that revenue for the period will be down as much as 23% sequentially, dropping to NT$70-80 billion ($2.3-2.7 billion USD) from NT$91.04 billion ($3.04 billion) in the second quarter. Margins are expected to fall 2 points to 25% for gross margins and 7% for operating margin. All this means that HTC is making less of a profit on the smaller amount of money that is coming in to the company.

HTC's flagship HTC One X
While HTC doesn't give reasons for the worsening earnings forecast, one simply needs to look at which smartphone is in everyone's hands and that is the Samsung Galaxy S III which has already sold more than 10 million units. And in a matter of weeks, HTC will have the next Apple iPhone to contend with. It's a one-two punch that just might knock HTC to the canvas for the count.

HTC recently closed its offices in South Korea in a bid to cut costs, but it is going to require more than shrinking spending to turn things around. The company thought it had a major hit with the HTC One X, but HTC is going to have to go back to the drawing board to come up with a model that can challenge the Samsung Galaxy S III and the next iteration of the Apple iPhone.

The company recently changed tactics and decided to focus on launching a smaller number of higher quality phones over the year. This resulted in the HTC One series which includes the HTC One X, the HTC One S and the HTC One V

source: SlashGear

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