Over the last few years, HTC has built a solid reputation for producing smartphones that have been generally well received by industry watchers, but unfortunately not that appreciated by the masses who normally favor more popular brands (here's looking at you, Apple and Samsung). Now, it appears that the Taiwanese phone maker will be taking a hit with the failure of its line of smartphone offerings to attract enough buyers for the second quarter of the year. As a matter of fact, HTC has cut its revenue forecast for the second quarter, and is expecting to post a loss. Not a good sign for the company, which has managed to achieve four straight profitable quarters in the last year.
HTC was always expected to face tough competition in the smartphone industry, especially in the field of selling premium mobile devices. The phone maker is not as big as Apple or Samsung, but it did manage to hold its own by starting to introduce more affordable mass market mobile devices in the past year. But recently, it has become harder and harder for HTC to keep up with the big boys, especially in the last few months when those big boys are going full throttle in announcing new products to a market already eager to check out what they have in store.
Things used to be sunnier (or at least sunnier than now) for HTC. The company was once considered one of the top smartphone sellers in the world. But in the last few quarters, the Taiwan-based mobile manufacturer has found itself relegated to the bench as other players have hugged the limelight. The company itself does not deny its lagging sales. For the second quarter, HTC is now expecting revenue to be in the range of $1.06 billion to $1.16 billion. The company had previously expected to post revenues between $1.48 billion and $1.56 billion. Moreover, HTC is looking to post a loss of somewhere between $0.31 to $0.32 per share for the second quarter of the year.
HTC attributes the less than expected second quarter sales figures to the slow demand for its current premium Android smartphone offerings. Also, it does not help that the company was not able to post strong sales in the Chinese market, which is considered the largest in the world right now. Furthermore, HTC is facing fierce competition from Chinese phone makers like Huawei, Xiaomi, and ZTE, not to mention the ever present threat of the leaders Apple and Samsung.
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