HTC smartphone crisis widens as its revenue may dip 30%

Smartphone vendor HTC said its revenue could dip around 30 percent in the third quarter.

Both Apple and Samsung recently shared impressive forecast for their next quarter.

Analysts are cagey about an immediate turnaround for the Taiwanese phone maker. ( HTC CEO Peter Chou: plans to achieve 10-15% smartphone market )

Smartphone makers such as Apple, Samsung, Sony, LG, etc. due to their innovative phones and marketing budgets grabbed market share from HTC though it had substantial presence in a couple of Asian markets.

The latest forecast from HTC reflects its inability to sell HTC One and regain its lost glory.

HTC smartphones

HTC on Tuesday said it expects revenue this quarter of T$50 billion to T$60 billion ($1.7 billion to $2 billion), much lower than its previous quarterly revenue of T$70.7 billion.

Besides HTC, Nokia and BlackBerry recently reported weak results due to tough market conditions.

HTC reported second-quarter net profit of T$1.25 billion. On top of this, its worldwide market share tumbled to 2.5 percent, compared with a peak of 10.3 percent in the third quarter of 2011, according to market research firm Gartner. ( Top 10 smartphone vendors in Q2 2013 )

Though HTC is expected to soon launch the HTC One Mini, Samsung and Apple are also likely to announce their own new offerings later this year.

According to an earlier report by IDC, HTC shipped 32.6 million smartphones in 2012, accounting for 4.6 percent of all smartphone shipped across the globe last year. HTC’s shipment last year was 25.2 percent lower than 43.6 million smartphones HTC shipped in 2011.

Taiwan is not helping HTC to recover. On June 18, 2013 IDC said HTC’s Butterfly smartphone has become the bestseller in Taiwan for the first quarter of this year as larger-screen models gained traction among local consumers. Smartphone shipments in Taiwan hit a quarterly record of 1.86 million units, accounting for 80 percent of the country’s total mobile phone shipments.

[email protected]