HTC expects 30% decrease in revenue in Q3

30 July, 2013 | Comments (87) | Post your comment

Tags: HTC, Android

There was some disagreement between analysts of how HTC will perform in Q3 Wall Street was looking at flat growth quarter on quarter, while Australian firm Macquarie Securities predicted a 15-20% drop in sales due to lower HTC One demand (HTC's main money maker).

It turns out Macquarie was closer to the mark but even its expectations weren't quite right HTC has come out with a statement that revenues in Q3 will be as much as 30% lower than Q2.

Q2 started off good for HTC, but a tough third month lead to a decrease in revenues compared to the previous year's quarter - $4.1 billion in Q2 2012, $2.36 billion in Q2 2013. Now HTC is expecting $1.7-2 billion in Q3 2013. The revenues in Q3 2012 were $2.35 billion, the average of 22 analysts' predictions for Q3 this year was $2.53 billion.

HTC says it expects "fierce" competition in the high-end market (where the HTC One is) and the mid-range market (where the new HTC One mini is), which will hurt the company's sales. The profit margins will be slim too.

The company said in its statement:

"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."

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HTC expects 30% decrease in revenue in Q3 - reader comments

  • prasha

No need of external sd card or removable batteries ...32gb s enuf...and fr d sake of batteries ,,,u nw av external portable battery bar and even charging case...its Bitch old style changing batteries... All Htc needs to do to increase its sales is ...

  • Reply
  • 2013-08-28 05:34
  • XuQn
  • AJ

What else can you expect when you stop giving support to your models in less than a year! They really need to think hard and not drive customers away to other manufacturers. Very disappointing from them.

  • Reply
  • 2013-08-16 23:40
  • bCHx
  • HTC One X 32GB

Today we turn to Sony? http://www.gsmarena.com/sony_turns_small_profit_ in_q1_with_thanks_to_android_sales-news-6500.php

  • Reply
  • 2013-08-01 15:16
  • mRtV