HTC is expecting its revenues for the third quarter to fall by 30 percent, as compared to the revenues generated in the previous quarter. According to a Reuter’s report, HTC has said that this fall in revenues will be far below that being forecasted by the analysts. It is due to competition in the mid to high-end smartphone markets that the company is facing a tough time in reviving its market share and has witnessed a massive drop in its revenues in the last few years. Also Read - HTC Wildfire E Lite smartphone design leaks online
Moreover, HTC has also suggested its profit margins have relatively gone down due to high investment in infrastructure and R&D. The Taiwanese company has stated that, “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.”
HTC expects the revenues for this quarter to go down to $1.7 billion to $2 billion, while the analysts had expected $2.5 billion revenues this quarter.
HTC’s revenues in the last few quarters have been disappointing for the company, and the company had witnessed a record low in the first three months of the year due to the shortage in the supply of the camera for the HTC One which delayed its launch further. Meanwhile, a couple of the top executives in the company had also left the company in recent times, which further affected its stocks.