TAIPEI, July 30 Taiwan's HTC Corp
expects revenue to fall as much as 30 percent in the third
quarter compared to the previous three months, far below
A delayed launch for the much-hyped HTC One this year has
highlighted the company's struggles against dominant smartphone
makers Samsung Electronics Co Ltd and Apple Inc
at a time when the market for high-end phones is said
to be approaching saturation.
HTC said it expects revenue this quarter of T$50 billion -
T$60 billion ($1.7 billion to $2 billion), below an average
forecast of T$75.65 billion from 22 analysts polled by Thomson
Reuters I/B/E/S. It reported revenue of T$70.7 billion in the
previous quarter and T$70.2 billion a year ago.
HTC has often disappointed with its earnings over the last
several quarters. Second-quarter net profit came in at just
T$1.25 billion, far below forecasts and following a record low
in the first three months of the year when a shortage of camera
components set back the launch of the HTC One.
A planned marketing blitz, which includes enlisting Robert
Downey Jr. for a reported $12 million to star in its ad
campaigns, is expected to weigh on profit margins and analysts
remain wary about the company's longer term prospects as Samsung
and Apple have much deeper pockets to develop new products.