Taiwanese manufacturer HTC yesterday announced that we can expect to see third-quarter losses which may see the firm’s shares drop steeply.
Although the statement issued by HTC said that the company’s gross profit margin is expected to be in the region of 18% to 21%, the operating margin is likely to range from 0% to -8%.
It is thought that the operating losses stem from the excess of inventory for the HTC First, the Facebook phone which sold far few handsets than analysts predicted.
The company’s statement continued to confirm that the HTC One has proved successful, gaining a far larger market share than ay past HTC models in key markets including China.
Peter Chou, CEO of HTC said in a statement: “We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H.”
However, analysts have since commented that if HTC has failed to make a decent profit on the smartphone that’s been awarded ‘best smartphone in the world’, it’s in trouble.
HTC did confirm that we can expect to see a range of mid-range devices hitting the market in Q4, so whether this will be enough to turn HTC’s fortunes on its head, only time will tell.
Written by Charlotte Kertrestel