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HTC sees sales slowing in Q3, plans new phones for Q4
2013-07-30 09:57:00| Telecompaper Headlines
(Telecompaper) HTC has forecast a slowdown in sales in the third quarter, as it works on expanding its range of smartphones. The company expects quarterly revenue of TWD 50-60 billion, down from TWD 70.7 billion in the second quarter. The gross margin is estimated at 18-21 percent, versus 23.2 percent in Q2, and the operating margin at break-even to 8 percent, compared to 1.5 percent in the previous quarter. In a presentation on Q2 results, HTC said margins were under pressure from a relatively high cost structure, lack of scale and provisions to clear old inventory. The company said it's taking action and hopes to see improvement towards the end of the year. It saw some progress in sales in the latest quarter thanks to the launch of the HTC One, which helped improve its share of the "superphone" market in key areas such as China and western Europe. It's now working on expanding its range of mid-tier phones, with launches expected by Q4. HTC also announced a number of appointments, including Jack Yang to president of South Asia, Sirpa Ikola to senior director of marketing for South Asia and Lorain Wong to vice president of global PR.
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Category:Telecommunications