HTC Posts Dismal Q2 Results Because of Strong Competition From Apple and Samsung

Unless your company is named Apple or Samsung, chances are you are not going to be successful in the smartphone industry as of late. The two aforementioned consumer electronics makers are essentially part of a two horse race now in the smartphone market, with other handset makers such as HTC, Nokia and RIM falling behind substantially due to the strong competition.

Unsurprisingly, HTC has announced disappointing financial results for the second quarter of this year that involve less revenue, decreased profit and less earnings per share. HTC posted $819 million in gross profits on $3 billion revenue, drops of more than 30 percent and 27 percent respectively compared to the same quarter year-over-year.

With both a next-generation iPhone and new Galaxy Note rumored to be unveiled in the coming weeks, HTC was perhaps wise in lowering its expectations for the third quarter. The handset maker believes that its revenues will drop even further in Q3 to between $2.3 and $2.7 billion, while it expects gross profits to drop by 25 percent.

HTC, an early smartphone curator, has a long hill to climb to regain its lost market share in the United States and other markets worldwide. HTC was the first handset maker to offer Windows Mobile smartphones, while it was also an original adopter of Google’s Android platform for mobile devices.

[TechCrunch]

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