HTC Corp is the largest smartphones seller in the US. But its run at the top now seems to be short lived after they cut their revenue expectations by as much as 23% for the second time in the week.
Earlier HTC had forecast the sales revenue between NT$125 to NT$135 billion, now the same has been brought down to NT$104 billion. Interestingly that brings the expectation down to exactly what was generated last year in the same quarter by HTC.
While HTC has blamed the global recession and the competition from players like Apple and Samsung for their drop in sales revenue, analysts at Citi Group do not seem to concur and have rather blamed the inferior product line up at the Taiwan based smartphone vendor for the slump.
As per Bloomberg’s report analysts Kevin Chang and Jonathan Gu have blamed it on the poor product line up dished out by HTC in the fourth quarter as the main reason behind the drop in revenues and also expressed surprise on how quickly the positions shift in the smartphone league.
Whatever may be the reason for the drop in the performance of HTC, this is the first time their sales will be lower than the immediate previous quarter. This fact has also severely affected their stock performance in the market with the buy ratings falling to neutral.
Its interesting to see what HTC next steps would be, especially considering the fact that they are about to be replaced by Samsung as the top Android manufacturer in the US.
