HTC shares drop as firm lowers revenue prediction

Published:  8 Jun at 6 PM

HTC shares have dropped 7 percent on c following the firm’s decision to lower its sales and profit predictions for the second quarter.
The firm says it expects to bring in a revenue of NT$91 billion ($3 billion, or £1.9 billion) for that period, which is 13 percent less than its original projection.

HTC also slashed its predictions for operating profit margin to from 11% to 9%. The company has been seeing slower demands from the EU, which occurs alongside a patent dispute which resulted in a delayed launch of its latest models in the US.
Experts said the company had also been damaged by the rising competition in the industry.

Andrew Milroy of Frost & Sullivan said that HTC was an early leader in Android, although they have not been prepared enough to handle the competition of other players in the industry.

The introduction of players including Samsung and Chinese brands has made life quite tough for them, added Milroy. HTC’s net profit plummeted by 70% during the first quarter compared to a year earlier. Revenue from the period also fell by 35%, raising anxiety that it was losing out in the game.