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This article was published on July 6, 2012

HTC sees 57.8% fall in net profit in Q2 2012, misses revenue forecasts over sales bans, weak demand

HTC sees 57.8% fall in net profit in Q2 2012, misses revenue forecasts over sales bans, weak demand Image by: Picasa
Matt Brian
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Matt Brian

Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him on Google+.

HTC’s second quarter earnings are in, and it’s been another poor three months for the Taiwanese smartphone maker as it saw total revenues reach NT$91.0 billion ($3.04 billion), down 57.8% year-on-year.

The company blames delayed US sales and weak demand in Europe as it posted $247.5 million in net profit, down from $585.95 million a year earlier, but was up from $149.5 million from its previous quarter.

HTC believed it would see an upturn in its finances in its second quarter, predicting a 55% increase in revenues in  as sales of its new One range of Android smartphones began to take hold. It predicted second quarter revenues to total T$105 billion ($3.56 billion) with a gross margin and an operating margin at 27% and 11% respectively, up from 25.03% and 7.53% in the previous three months.

This followed a dismal first quarter of 2012, when the company announced revenues of NT$67,790 million (roughly $2.3 billion), a decrease of nearly 35 percent year-on-year. Whilst it was in line with HTC’s earlier projections – its outlook for total revenues in Q1 2012 was “between NT$65 billion and NT$70 billion”.

In May, HTC saw its One X and Evo 4G smartphones delayed at US Customs, with the company accused of infringing an Apple patent. HTC soon saw the sales ban lifted, but its launch of the One X in the country was delayed as a result.