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Friday, August 03, 2012
HTC Posts Significant Profit Drop


Taiwan smartphone maker HTC reported Friday a 58 percent drop in second quarter profit year-on-year, as intensifying competition from Apple and Samsung hurt thye company's sales.

HTC said profit amounted to 7.4 billion New Taiwan dollars ($248 million) from revenue of NT$91 billion in the three months through June.

It reported a 70 percent drop in the first quarter and a 26 percent drop in the final quarter last year.

HTC predicted third quarter revenue of NT$70-80 billion, down 41-48 percent from the same period last year.

HTC had hoped to win back some of its market with the launch of "HTC One" series, which offers users a better camera and music experience. But following the huge popularity of Samsung's Galaxy handsets, the model's key U.S. carrier, AT&T, recently slashed the prices of "HTC One" by half, which could hurt HTC revenue.

Got JTC, U.S. remains an important market but still, the company sees China as "a key driving force for our future growth," according to HTC chief financial officer Chang Chia-lin.


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