HTC's second-quarter net profit dropped 58 percent year on year, the company reported Friday, a sign that its newest smartphones are not doing as well as it hoped.
The Taiwanese smartphone maker made net profit of NT$7.4 billion (US$248 million) in the second quarter, down from NT$17.5 billion a year earlier. HTC's revenue for the quarter was also down, by 27 percent year on year, at NT$91 billion.
The company has reported net profit declines for three straight quarters, brought on by increased competition from Samsung and Apple.
HTC, however, had expected to see its second-quarter earnings stabilize at last year's level with the introduction of its new HTC One series of smartphones. The company had previously lacked a definitive flagship device, which hurt its competitive edge, according to research firms.
But in June, HTC revised its revenue forecast, bringing it down from NT$105 billion to NT$91 billion. The company attributed this to lower anticipated sales in Europe, along with delayed shipments of smartphones to the U.S., the result of its patent battles with Apple.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.