HTC Corp was speculated to fail in sustaining sales progress in the third quarter. The glow around Taiwan's smartphone producer was expected to decrease. Its leading models were assumed to be trumped by new set of products from larger competitors like Apple Inc and Samsung Electronics Co Ltd.
HTC's second quarter net earnings increased to TW$1.25 billion or US$41.63 million. This was due to strong sales brought by the latest version of HTC One and colourful Butterfly range. In the first quarter, HTC documented a record low. Its sales plunged due to shortage in camera parts that resulted to a delayed product launch.
The company's earnings was said to be short-lived following new product launchings from bigger companies. The leading mobile makers were said to be more innovative with their ventures nowadays.
"HTC may have new products in Q3, but competition from Apple and other Chinese brands are fierce," Nomura Securities' Peter Liao, a Taipei-based analyst said. "It'll be hard to keep the growth."
"The big drop on June sales likely proves the HTC One sales momentum slowdown and 3Q may be only flattish as is the market expectation," Goldman Sacks analyst Michael Shieh stated.
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