Rivals to loom large over HTC sales, Q3 growth seen flat


HTC Corp may not sustain gross sales growth into the third-quarter because the glow around the Taiwanese smartphone maker’s flagship adaptation is more likely to be eclipsed by means of new merchandise from greater competitors Apple Inc. and Samsung Electronics Co Ltd.

Rivals to loom large over HTC sales, Q3 growth seen flat

Q3 growth considered flat

robust gross sales of the latest version of the HTC One, in addition to the colorful Butterfly vary, boosted HTC’s 2d-quarter internet profit surged to T$1.25 billion from a file low within the earlier quarter when a scarcity of digital camera parts delayed its product launch.

The profit figure, however, lagged forecasts and analysts mentioned the sales boom used to be likely to be brief-lived. gross sales for the July-September quarter are anticipated to remain little modified from the previous quarter and few new products are in the pipeline.

the company has also reduce on part orders for the quarter, which traditionally sees higher gross sales, a few analysts mentioned. BNP Paribas, in a contemporary research word, said it anticipated general third-quarter orders to remain flat from the 2d-quarter.

“HTC may have new products in Q3, but competition from Apple and other Chinese language brands are fierce,” mentioned Taipei-based totally analyst Peter Liao of Nomura Securities. “It would be exhausting to keep the growth.”

Analysts stated the just about 25 pic drop in HTC’s June sales in comparison with the same 12 months-ago duration additionally boded in poor health for the following quarter.

“the large drop on June gross sales probably proves the HTC One sales momentum slowdown and 3Q is also only flattish as is the market expectation,” Goldman Sacks analyst Michael Shih stated.

increase in gross sales for smartphone market leader Samsung Electronics has also began to wane. The South Korean firm neglected already modest expectations for its quarterly salary guidance, deepening concerns that its smartphone trade may have peaked.

HTC has launched into an advertising campaign to boost its brand picture, a technique it said in may would squeeze running margins for the rest of the yr.

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the company is expected to launch the One Mini phone, which features a four. Three-inch display and is centered on the mid-market, in August, a month before each heavyweights Samsung and Apple are likely to unlock new and upgraded choices.

along with the extraordinary competitors, HTC has considered several executives leave the company this yr., together with Chief Product Officer Koori Kodera. Company sources say the departures were associated to a disappointing product launch and a forty % drop in whole sales in 2012.

HTC used to be the sector’s 10th-largest smartphone maker by means of shipments in the fourth quarter 2012, in line with IT analysis agency Gartner, jostling in a crowded container in the back of Samsung and Apple.