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HTC Sees Q2 Profit, Expects Decline Due to Product Delays

By Andrew Berg | July 31, 2009

HTC’s second-quarter revenue reached $1.16 billion, up 10 percent from the same quarter a year ago. That was in line with the company’s guidance range. Second-quarter gross profit margin (GPM) was 32 percent. Operating expenses beat guidance, coming in at 13.8 percent.

In an earnings statement today, the Taiwanese OEM said that mid-tier converged devices with attractive price points and high performance will drive smartphone penetration. HTC believes the next-generation mobile broadband user experience will be benchmarked by user-friendly interfaces, social-network embedded communications, intuitive touch screen navigation and multi-tasking operating systems.

HTC is the company responsible for the original Google Android-based phone, the G1. Recently, the company has been making waves in the handset market with a flurry of summer releases. Most notably, T-Mobile USA set an Aug. 5 launch of the myTouch 3G, HTC’s follow-up to the G1. The myTouch 3G has been available for pre-order to existing T-Mobile customers since July 8.

In Europe, HTC is releasing the HTC Hero, which features a unique form factor and the Android OS. The company said that the primary purpose of the Hero launch is to unveil HTC’s new “Sense” UI.  According to a report from EndGadget today, the Hero could see an October release in the United States with Sprint.

Going forward, HTC said that it views the U.S. market as relatively healthier while it views the European market as weaker. The company expects third-quarter revenue to decline, noting what it calls “OS transitional/ramping issues.” More specifically, HTC said that a couple products are being delayed and it sees a slower-than-expected rollout of its handsets in China due to lack of 3G infrastructure and operating environment. 


Filed Under: Devices

 

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