HTC posts revenue of NT$91.04 billion for Q2, profit dives by 58%

Telecom Lead Asia: HTC, smartphone manufacturer from
Taiwan, has posted revenue of NT$91.04 billion for the second quarter of 2012.


Its net profit plunged by 58 percent at NT$7.40 billion
for the second quarter of 2012, as compared to a year earlier quarter. The net
profit was hugely impacted by increasing competition from samrtphone majors
Apple and Samsung.


HTC predicts third quarter revenue of NT$70-80 billion,
down 41-48 percent from the same period last year.


HTC chief financial officer Chang Chia-lin said that the
U.S. will continue to be an important market, but that China will be a key
driving force for our future growth.


HTC launched Desire V series with three largest mobile
operators in China during the quarter. HTC believes that brand awareness,
strong operator partnerships and increasing retail presence in China are key
growth drivers in the region.


Asia regional sales met expectation since the One family
launched in 2Q.  HTC also launched HTC J in Japan.


The company said in North America and EMEA, its products
are well received by both operator and channel partners, focusing on increasing
consumer preference.


However, AT&T, a key U.S. carrier of HTC One series,
has recently slashed the prices of HTC One by half, which could damage HTC


During the quarter, HTC introduced various new products
including HTC One series, Desire series, and regional-focused devices such as
the HTC EVO 4G LTE and HTC DROID Incredible 4G LTE.


Furthermore, the Company also launched HTC Connect, a
certification program that allows customers to send high-quality, wireless
audio and video experience from their HTC devices to compatible in-home and
in-car electronics.


In July, HTC said it was selling half of the 50 percent
stake it had bought of U.S. headphone maker, Dr. Dre’s Beats Electronics,
raising concerns about the soundness of the company’s investment policy.


Smartphone vendor HTC to close Korea sales office


Recently, HTC also decided to close its Korea sales
office. HTC faces immense competition from Samsung in the Korean mobile market.


[email protected]