HTC warns of lower Q2 revenue, cuts target by 13% to $3.03 billion

HTC has lowered its Q2 2012 target revenue to $3.03 billion US, down 13% from previous expectations. This follows a weak sales quarter in Europe and delays for its One series devices in the United States after the EVO 4G LTE and One X were held up for two week at US customs.

Overall, sales were up in China, and though revenue is expected slightly lower — some of which can be attributed to a one-time write-down of last year’s inventory — the company is still expected to make a marginal profit in Q2. The HTC One X has been considered a success, with steady sales in Europe — they’re just not good enough. CFO Chia-Lin Chang said, “a bigger softness is from Europe than the U.S.,” which is encouraging news; the company needs hits in North America in the lead-up to the release of the Galaxy S III.

Q2 revenue is still expected to rise sharply from Q1, which is typically a slow quarter, but overall sales in May were down 26% from the same month in 2011. Hopefully the company can pick things up heading into Q3 as it will have phones on every US and Canadian carrier by then.

Source: Reuters