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Strong One sales could increase HTC revenues by 55% in Q2, according to forecast

Thing are looking up for HTC
April 25, 2012

After a couple of years of great success in the smartphone business, things have abruptly (but not surprisingly) started going downhill for HTC. The last three months of 2011 and the first of 2012 have been pretty horrific for the Taiwanese, with sales, revenues, and profit all going down massively.

However, if we are to trust the company’s latest forecast, it seems that things could well pick up for HTC soon enough, with a second quarter of 2012 expected to bring a 55% increase in revenues.

HTC’s predictions might hint towards pretty strong One sales, but should be taken with a grain of salt for the time being. I mean, usually, these forecasts come true or at least prove somewhat accurate, but in this particular case I feel that HTC’s actual revenues depend on quite a few variables.

First of all, we’re almost a month in this second quarter of 2012 and the One X, S and V, the smartphone trio that should drive sales forward for HTC, is still nowhere to be found on most of the important markets in the world. In US and Canada, just the T-Mobile One S is available at this point, and the situation might drag on for a couple more weeks.

There’s also the future Samsung Galaxy S3 looming over the market, which could seriously cripple HTC’s chances of getting back in the smartphone game (for real, anyway), if it will come with the rumored specs and if those leaked benchmark scores would prove to be accurate.

All in all, though, there’s a serious possibility that HTC has in fact taken these things into consideration when drawing up the forecast, which might mean that they have true confidence in the One Series (or they know something we don’t about the upcoming Galaxy S3).

Looking closely at HTC’s predicted numbers for the second quarter of 2012, we can see that the Taiwanese are expecting revenue to total NT$ 105 billion ($ 3.56 billion) with a gross margin and an operating margin of 27% and 11% respectively, significantly up from 25.03% and 7.53% in the year’s first 90 days.

While that should be pretty impressive and could mark the company’s revival, we have to mention the fact that year-on-year that would still be a regression for HTC. In Q2 2011, the Taiwanese pulled a record overall revenue of NT$ 124.4 billion, almost NT$ 20 billion more than what the company could earn from April to June 2012 .

It’s safe to say, therefore, that even if Q2 revenues will fall into this HTC projection, the Taiwanese’s long-term success will still depend on several aspects that we can’t quite grasp at the moment, like the company’s ability to reinvent itself and start covering market niches ignored up until now.

What do you guys think? Will the One X, S, and V mark a turnaround for the struggling HTC? Are you thinking of buying any of those three smartphones? Let us know in the comments section below!