HTC (HTC) announced on Monday that the company’s this year first quarter revenue would decline, which is mainly due to the increasing competition from competitors.
The HTC Chief Financial Officer Winston Yung said the sluggish fourth-quarter earnings last year and this year first-quarter earnings guidance were both caused by the company’s product periodicity. After the release of new products, this situation is expected to be improved.
Analysts said that the HTC would achieve a reversal of the performance, benefitting from the release of new products. As the smart phone market has become more competitive, HTC faces many challenges. HTC predicted its first-quarter revenue would decline by 33-38%, its gross profit margin would reach 25% and the operating margin might reach 7.5%, much lower than the same period last year.
