HTC, a Taiwanese multinational manufacturer of smartphones and tablets slashes their revenue forecast pointing to weak demand in their high-end device and slow sales performance in China.
HTC has been praised by critics and tech gurus for their smartphones, but consumers still go for flashy brands like Apple and Samsung. Last Friday they slash their 2nd Quarter revenue forecast and warned that they may post a loss. They have posted gains in the last four quarters due to their strategy of selling more affordable mass-market devices, but due to other new players in that market they may have ran into huge problem. While the premium smartphones market is very difficult to break into due to the big players like Apple and Samsung that have huge marketing budgets.
HTC said that they expects revenue of US$1.06 billion to US$1.16 billion. They were expecting to earn US$1.06 billion to US$1.16 billion, now the company said that they would post a loss of 31 cents to 32 cents a share in the period. HTC said that this is due to slower demand turn-over for their high-end Android devices, as well as weaker sales in China.
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