Reuters: Technology News: HTC sees third-quarter revenue sliding as much as 30 percent, missing forecasts

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HTC sees third-quarter revenue sliding as much as 30 percent, missing forecasts Jul 30th 2013, 08:34 Tweet Share this Email Print Related News Samsung to invest in chips, panels as smartphone outlook dims Fri, Jul 26 2013 Amazon's overseas weakness overshadows strength at home Thu, Jul 25 2013 Apple wobbles in China as rivals offer more, for less Wed, Jul 24 2013 Strong iPhone sales buoy Apple's third quarter, shares climb Tue, Jul 23 2013 Nokia's halting turnaround hit by weak handset sales Thu, Jul 18 2013 Analysis & Opinion Apple asks Obama to take a stand on injunctions and essential patents Apple overcomes China blues for now An HTC One smartphone is displayed in a mobile phone shop in Taipei April 8, 2013. Credit: Reuters/Pichi Chuang By Faith Hung TAIPEI | Tue Jul 30, 2013 4:34am EDT TAIPEI (Reuters) - Taiwan's HTC Corp said it expects revenue to fall as much as 30 percent in the third quarter compared to the previous three months, far below analysts' forecasts, citing fierce competition in the mid to high-end smartphone markets. 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. The company also indicated a weak outlook for profit margins. "Our overall gross margin has been impacted by a relatively higher cost structure, lack of economy of scale and certain provisions needed to facilitate the clearance of aging products," it said in a statement. 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 actor 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. (Additional reporting by Michael Gold; Editing by Edwina Gibbs) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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