HTC expects revenue to decline in Q3, says it needs to improve its brand

HTC pointed to improving its brand as a major long-term challenge to help compete in smartphone sales

Taiwanese smartphone maker HTC said on Friday it needs to bolster its brand, forecasting a decline in revenue and profit in the third quarter.

Third-quarter revenue will reach between NT$70 billion (US$2.3 billion) to NT$80 billion, HTC said in a conference call on Friday, representing a year-over-year decrease of between 41 percent and 48 percent, and also a decline from second quarter revenue of NT $91 billion.

HTC, which once saw rapid revenue growth, has reported sagging profits for the last three quarters as its faced stiff competition from rival vendors Apple and Samsung. In addressing the company's challenges, HTC CFO Chang Chia-Lin pointed to its brand as an important area the company needs to improve.

"HTC is still a young company," he said, noting that the company brand name "HTC" has only been in use since 2006. "In a lot of countries, the brand awareness is fine. We need to focus more on the brand consideration and the brand preference," he said.

To improve its brand image, HTC will continue to bring innovative products to the market, and leverage its strong partnerships with carriers, Chang said. The company is also focused on improving its marketing, retail and sales execution in order to better reach consumers.

HTC's revenue will decline at different degrees across all markets, except for China, which the company named as a main driver for future growth. HTC's shipments in China for the second quarter increased by 389 percent, according to research firm Canalys, although its market share remains small at less than 5 percent.

In recent months, however, HTC, closed offices in both Brazil and South Korea, countries where the company's market share for its smartphones has been low. The office closures are not simply meant at saving costs, Chang said, but will help the HTC streamline its business in "key growth" markets for the company.

Last month, HTC gave up its majority ownership and sold back half its stake in Beats Electronics, a U.S. headphones provider, that the company used to help improve the audio of its smartphones. Analysts have said the partnership may have fallen apart because it fell short of expectations.

Chang, however, said the sale would allow Beats to better expand globally as a product company under its own Beats brand. "This arrangement is a win-win situation," he said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?