Revenues Of HTC Corporation Continue To Decline

Revenues Of HTC Corporation Continue To Decline

HTC Corporation revealed recently that its revenue for the month of July declined by nearly 33 percent compared to the same period last year. Revenues of the Taiwan-based company for July were at around $353 million, which is lower than its $522 million revenue for the same period last year.

The revenues of the company were affected by Samsung and Apple, which currently dominate the smartphone market. Aside from the two companies, other companies, such as Lenovo and Xiaomi, have also affected the market of HTC. The latest flagship device of the company did not perform according to the expectations of the company. Sales of the HTC One M8 was described as soft by Michael Walkley of Canaccord Genuity.

Intense competition in the Android smartphone market was cited as the reason for the poor revenues of HTC Corporation. This competition in the market is expected to increase during the remaining months of the year. The company is expected to go up against an array of Android smartphones from Samsung, Lenovo and Xiaomi as well as the iPhone 6 of Apple.

Chialin Chang, CFO of HTC, recognized the current problems the company is facing. Chang also indicated that the initial excitement over its latest device offerings, including the HTC One M8, has started to settle down. However, he is expecting this decline to end soon.

The company is expecting to offer other devices in the future to increase its sales. A media event will be hosted by the company on August 19 in New York City where the eight-inch Nexus 8 tablet is expected to be launched. Speculations have also emerged that the One Wear smartwatch may also be unveiled during the same event.

However, the launch of the latest device offerings of HTC Corporation may be affected by the reported introduction of the iPhone 6, latest iPad, and the iWatch before the end of the year.

Posted by James Fried on Thursday August 14 2014, 5:34 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0