TAIWANESE PHONE MAKER HTC has reported a 60 per cent dive in profits in the second quarter, as it continues to struggle to compete against Samsung and Apple.
The firm was predicting a stellar second quarter after it failed to impress in the first quarter, but it seems HTC's One range hasn't performed as well as it had been expecting. Although it saw 34.3 per cent growth from the previous quarter, sales were down 26.8 per cent year-on-year with revenues of £3bn and lower net income of $247m.
Things aren't likely to get better for HTC anytime soon either, as the company has lowered its outlook for the next quarter. The once high-flying phone maker predicts revenues for the third quarter of between $2.3bn and $2.7bn, a steep drop compared to the second quarter.
HTC blames this dismal outlook on its continuing struggle in Europe, where it strains to compete against the Samsung Galaxy S3 and Iphone 4S.
"China will continue to see growth in the third quarter, while other markets will have different degrees of decline," said HTC's CFO Chialin Chang. "Europe, Middle East and Africa will face challenges because of macro softness and competition." µ