HTC Slashes Revenue Expectations
The phone maker says it is having a tough time in Europe
HTC has cut its second quarter revenue guidance, as it continues to struggle with heightened competition and issues with sales in Europe.
The Taiwanese smartphone maker has been hit by “lower than anticipated sales to Europe, and the delayed shipment and launch of certain products in the US.”
HTC chose to cut its revenue forecast by 13.3 percent, as it believes it will now achieve NT$91bn (£2 billion) in revenue, down from NT$105 billion.
Tough times
In April, the company reported a profit decline of 70 percent, caused by strong competition from the likes of Apple and Samsung, who now dominate the smartphone sector. HTC even admitted it had “dropped the ball” on delivering new phones.
Last month, HTC had issues getting devices into America. US Customs officials were indefinitely holding shipments of the HTC One X and Evo 4G LTE, thanks to an injunction by Apple for infringing its patent.
The phone maker is also embroiled in a number of legal tussles. In March, Nokia filed patent suits against HTC in the US and Germany, as well as a complaint against HTC to the US International Trade Commission (ITC).
HTC’s new high-spec phones could bring the company some much-needed success. The uSwitch.com Mobile Tracker ranked three One Series devices in its top 10 for the UK’s most popular handsets.
“What is interesting this month is the arrival of the HTC One series as a major player in the smartphone market alongside Apple and Samsung. The One V’s new entry means HTC now has all three One series devices in the top ten. These are fun yet powerful smartphones, concentrating on cutting edge devices at incredibly competitive prices,” said uSwitch.com’s Ernest Doku.
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