HTC Q3 revenue to drop 22 percent

HTC has forecasted Q3 revenue of NT$50 billion to NT$60 billion, a drop of around 22 percent vis-a-vis second quarter revenue.

HTC has posted quarterly revenue of NT$70.7 billion, with gross margin of 23.2 percent and operating margin of 1.5 percent. Net profit and EPS were NT$1.25 billion and NT$1.50, respectively.

“My leadership team continues to focus on execution,” said Peter Chou, CEO, HTC.

“We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H,” added Chou.

As manufacturing ramped up, the US saw sequential growth in 2Q, as well as expansion in retail channels. EMEA saw renewed strength in major Western European markets and emerging countries. HTC gained market share in Taiwan, showing an improved presence in Hong Kong and warm reception of its products by consumers in Japan.

In China, sales of HTC’s high-end models improved, while competition at the mid-tier and affordable intensified. In South Asia, the improvement of key operator relationships provides optimism about the region.

The new HTC One has performed well in the market, better than that of our hero products for the same period last year. We aim to extend the momentum as we enter into the second half of 2013. The new HTC One has also helped the company establish strong brand awareness and received numerous accolades as the world’s best smartphone. With the help of HTC One, we have regained superphone market share across major markets including China.

HTC also have plans underway to launch a range of innovative and competitive mid-tier products in the coming months. We hope to regain momentum and market share in these segments in Q4. This will address our challenge of mid-tier products competitiveness

The company is also optimizing its organization, including the improvement of management efficiency and effectiveness. HTC will continue to invest in innovations and technology, as well as retaining and rewarding our best talents. We look forward to a brighter future for HTC and continue to delight our customers with the best and most exciting products.

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