HTC revenue set to fall in Q3

HTC revenue set to fall in Q3

Sales of HTC smartphones will only grow in China this quarter, the Taiwanese manufacturer said, as it announced Q2 revenue was down more than a quarter on last year.

HTC sales in Europe continue to be hit by competition from Apple and Samsung in the smartphone market and the economic crisis in Europe.

Although Q2 revenue was stronger than in Q1, it remains much lower than the previous year. The company posted revenue for the second quarter of £1.93bn, down more than a quarter from a year ago but significantly improved from the £1.46bn it reported in the first quarter of this year.

HTC’s profit in Q2 is also below profits in the same period last year, down by half from £32m to £16m but up 65% on the first quarter of this year.

HTC warned that its next quarter would be difficult with Q3 revenues expected to be between £1.51bn and £1.72bn.

Speaking at an investor conference, HTC CFO Chialin Chang said China will be a key market for the manufacturer.

He said: ‘China will continue to see growth in the third quarter, while other markets will have different degrees of decline.

‘Europe, Middle East and Africa will face challenges because of macro softness and competition.'

The news follows HTC’s announcement last week that it is closing its South Korean office. It also sold its 25% stake in Beats Electronics back to its founders in July.

Speaking of the sale, Chang said: ‘The founding members and current management team have the vision and management expertise to take Beats to the next level and to be a very successful branded company.

‘As the largest outside shareholder we will benefit tremendously from that. It will give the current management more flexibility and additional motivation to make that happen.’

Written by Mobile Today
Mobile Today

Comments

Please wait...


Please write code to prove you're human