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 using new merchandise from greater competitors Apple Inc. and Samsung Electronics Co Ltd.

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 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.

A few analysts mentioned that the company has also reduced part orders for the quarter, which traditionally sees higher gross sales. In a contemporary research word, BNP Paribas 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 is 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 compared to the same 12 months-ago duration also 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.

The increase in gross sales for smartphone market leader Samsung Electronics has also begun 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 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 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 with a disappointing product launch and a forty % drop in wholesales in 2012.

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