HTC Posts Fall in Q3 Revenue as Smartphone Sales Sputter

HTC Posts Fall in Q3 Revenue as Smartphone Sales Sputter
Advertisement
Taiwan's HTC Corp forecast that revenue in the July-September quarter will likely decline as sales of its flagship phone begin to taper off after a strong second quarter.

Total third-quarter revenue is likely to fall between TWD 42 billion ($1.40 billion) to TWD 47 billion, compared with TWD 47.05 billion in the same period of 2013, the company said Thursday ahead of the smartphone maker's quarterly investor conference.

After a relatively strong rollout of its flagship One M8 (Review | Pictures) phone in late March, company chief financial officer Chialin Chang admitted that demand for the firm's "new products" has settled at a low level.

"In light of the predicted revenue decline, we have to adjust resources appropriately to maintain profitability," Chang said, adding that the firm will "streamline" its sales and marketing operations.

HTC's sales have already started losing steam, with the company's overall revenue having suffered a steep 27.4 percent year-on-year tumble in May and was virtually unchanged in June, leading to a second-quarter revenue decline of 7.9 percent.

Gross profit margin in the third quarter is expected to be in the range of 22.5 to 23 percent, the company said, a bit higher than the 22.2 percent of the second quarter.

HTC had previously reported higher-than-expected second-quarter net profit of T$2.26 billion.

It will likely face further headwinds in the second half of the year with the much-anticipated release of a new large-screen iPhone model from industry giant Apple Inc.

© Thomson Reuters 2014

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

HTC J Butterfly With Snapdragon 801 and Waterproof Rating Launched
Toshiba Posts 68.7 Percent Jump in Q1 Net Profit on Strong Sales in Japan
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »