HTC loses faith in its own lineup, predicts gloomy Q4 ahead
If you think that HTC has hit rock bottom with their disastrous Q3 financial results, the phone maker has more bad news to share. In a recent statement, the company said that its Q4 revenue is set to drop 14% compared to the previous quarter, signaling that it has yet to succeed in weathering the
The projected $2.05 billion revenue for the busy holiday season is well below analysts’ forecasts, which expect HTC’s offerings in the smartphone market can pull in $2.5 billion in revenue in the final quarter of the year.
HTC also said that it expects its gross margin in Q4 to fall to 23% from 25% in the previous quarter, and operating margin to dip to 1% from 7%.
While it’s hard to imagine for a company of its magnitude to end up becoming a shadow of its former self in just a few short years, HTC is now living up to its “quietly brilliant” slogan, albeit with the last word omitted. HTC has admitted as much that it’s facing difficulties in rebuilding itself amidst the increasingly competitive landscape.
Speaking of new products, it’s obvious that the One X+ alone won’t be enough to turn things around for the struggling company. We have a good feeling about the HTC J Butterfly aka the Droid DNA (DLX), though. Here’s hoping that the 5-inch smartphone will be the big, breakout hit that HTC has been dying to score – which the One series evidently has failed to do.