HTC warns of drop in sales and profits in fourth quarter

HTC warns of drop in sales and profits in fourth quarter

HTC is predicting a fall in sales of 14% in its next quarter, after revealing profits slumped by more than 75%.

The Taiwanese manufacturer's performance contrasted with that of Apple and Samsung, both of which posted strong results overnight. Sales were NT$70.2bn (£1.48bn), down 48.3% on last year and 22.9% on its second quarter. Net profit after tax was NT$3.9bn (£82.7m), compared to NT$7.4bn (£156.9m) in its previous quarter and NT$18.7bn (£396.6m) in 2011. HTC said its focus on Europe, Middle East and Africa was on brand-building but singled out China as the driver of growth. The manufacturer is launching its Windows Phones, the 8X and 8S, as well as the Android One X+ before the end of 2012.

However, it warned of a sequential decline in sales for its next quarter, with revenue expected to hit NT$60bn. Profits will also fall, with operating margin predicted to drop from 7.0% in Q3 to 1% next quarter.

Peter Chou, CEO of HTC [pictured], said: 'Our products, innovations, employees and partners are the cornerstone of our business. We greatly appreciate getting our latest design innovation into the hands of our customers - the inspiration of everything we do.'

Meanwhile, HTC has launched a personalised money-saving deals offer for users of the One X+ and Windows Phones 8X and 8S handsets. Best deals use a consumer's location to send the best discounts in their area. Among the 12 companies that have signed up are LivingSocial, Trip Advisor, Qype Deals and Offerum. It is launching in five markets including the UK. A total of 1,700 deals will be availale at launch.

Cédric Mangaud, VP of value-added services for HTC, said: 'HTC strives to deliver the best web content and services to its customers. We’re excited to be launching a service that gives you the very best deals, in line with your own personal interests, wherever you are.'

Editor: Graeme Neill

Written by Mobile Today
Mobile Today


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