Science & technology
Taiwan's HTC expects revenue to fall in Q3
Publish Date: Jul 31, 2014
Taiwan's HTC expects revenue to fall in Q3
  • mail
  • img
newvision

TAIPEI - Taiwan's struggling smartphone maker HTC said Thursday it expected revenue in the July-September quarter to drop up to 35 percent from Q2 as sales slowed for some products.

HTC estimated that revenue in the third quarter to be in the range of Tw$42 billion-Tw$47 billion ($1.4 billion-$1.57 billion), down 28 percent to 35 percent from the previous quarter when revenue almost doubled to Tw$65.1 billion on-quarter.

Gross profit margin in the current quarter is estimated to be 22.5 percent to 23.0 percent while earning per share is expected to be in the range of Tw$0.05-Tw$0.69, it said in a statement.

"Some of our products, after the initial excitement, have settled at a lower level," chief financial officer Chialin Chang said. "But the good thing is it is stabilised."

HTC's net profit came in at Tw$2.3 billion in the second quarter, aided by the good sales of its new flagship smartphone HTC One M8 and other models, the company said.

That was up 80 percent on-year and much improved from a net loss of Tw$1.88 billion in the first quarter, when sales hit a three-month low.

The HTC One M8 and Desire 816 dominated in the Taiwan market while sales momentum was "sound" in China and India in that period, the company said.

However, income in the three months to June was at the bottom range of a Tw$65 billion-Tw$70 billion forecast and analysts warned HTC had a long way to go before regaining lost ground to rivals Samsung and Apple and low-cost Chinese rivals such as Lenovo and Huawei.

In the 2013 third quarter, HTC swung to its first net loss of $101 million since listing in 2002, as it fell out of the world's top 10 vendors and has been struggling to increase its foothold in the highly competitive smartphone market.

RELATED STORIES:

Android Silver to replace Google Nexus line

AFP

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
$100 mn Ebola pledge from Microsoft co-founder Allen
Microsoft co-founder and philanthropist Paul Allen said he was boosting his donations to combat the Ebola outbreak in West Africa to $100 million....
Toyota shares rise on record profit report
Shares in Japanese auto giant Toyota advanced in Tokyo trade on Friday following a report it is set to book a record operating profit in the six-month period to September....
Lufthansa close to deal with IBM for IT infrastructure unit
German airline Lufthansa is close to a deal to sell its IT infrastructure unit to IBM, including an outsourcing agreement for the services, as part of a shake-up of its technology activities, it said on Wednesday....
Google launches new email service dubbed
Google has launched an email service called "Inbox" on Wednesday that will better organize emails and display information such as appointments, flight bookings and package deliveries in a more user-friendly way....
Microsoft ditching the Nokia brand
MICROSOFT is ditching the Nokia brand name from new devices, less than a year after acquiring the Finnish mobile firm...
Apple CEO meets Chinese official amid iCloud hacking row
Apple CEO Tim Cook met a senior Chinese official Wednesday, days after hackers targeted the company's iCloud service in an attack which an anti-censorship group claims originated in China....
Should diplomatic passports issued to ex-govt workers be with drawn?
Yes
No
Can't Say
follow us
subscribe to our news letter