Weak demand in Europe (and Customs ban) cause HTC to cut sales target for Q2 2012

June 7, 2012
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    Another quarter, another sales projection revised downwards for the world’s 5th smartphone maker. Despite the release of HTC’s stellar One series of smartphones in the second quarter, it seems the Taiwanese couldn’t quite muster up the sales they needed to meet the company’s initial sales forecast for the quarter. HTC has slashed its Q2 2012 sales target to $3.03 billion, down 13.3% from $3.51 billion.

    Speaking to an analyst, HTC chief financial officer Chia-Lin Chang said that the revised Q2 sales forecast is due to the lower than anticipated sales from European customers. “A bigger softness is from Europe than the US,” he explained. While this can be an indication that HTC’s sales in the US are picking up, the momentum was somewhat stalled by the recent import bans of two of its handsets, the HTC EVO 4G LTE and HTC One X — though the two are already in the clear now.

    Meanwhile, China has become a bright spot in HTC’s attempt to keep up with its rivals. Chang said that sales performance in the region has been better than expected and that “will contribute a representative percentage to the revenue this quarter.”

    One major point of concern that may jeopardize HTC’s sales for this quarter and beyond is a fresh complaint filed by Apple to ITC concerning the same alleged patent infringement. Apple now asks ITC to consider banning all of HTC’s product portfolio in the US. Also, the worldwide launch of Samsung Galaxy S3 would undoubtedly soften sales of HTC’s handsets.

    It’s not all doom and gloom for HTC, though. The company recently inked a deal with Sony that will let PlayStation Mobile run on HTC’s handsets. Taking advantage of the partnership, it didn’t take long for HTC to showcase the One X, One S, and One V all running PlayStation games. This will somewhat help reinvigorate customer’s interest for the phones all the way until the end of the year, and until the sequel to the One series is announced.

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