HTC expects 55pc revenue jump in second quarter
HTC One range
HTC said it predicts a 55pc jump in revenue in the second quarter of 2012, suggesting things will turn around for the mobile company after recent disappointing quarters.
Reuters reports that HTC expects its second-quarter revenue to hit NT$105bn (US$3.56bn). It also expects its gross margin to reach 27pc, up from 25.03pc last quarter, and believes its operating margin will reach 11pc, up from 7.53pc last quarter.
After experiencing record quarters, HTC saw much slower sales in the fourth quarter of 2011 and the first quarter of 2012. In the last quarter, its revenues decreased by 35pc year-on-year and its net income after tax fell by 70pc year-on-year.
This drop was due to strong competition from Apple and Samsung, with HTC’s chief financial officer Winston Yung saying the company had “dropped the ball” on new devices during the fourth quarter.
This forced inventories higher and prompted the company to forecast a ‘transitional’ first quarter.
HTC recently changed its strategy, deciding to focus on a few high-spec devices in 2012 to gain back marketshare as opposed to flooding the market with lots of devices.
HTC revealed its One range, which offered three models. They have recently been released to the market, which could be the reason for its improved revenues.