HTC forecasts third-quarter consolidated revenues of NT$50-60 billion (US$1.7-2.0 billion) slipping 15.1-29.2% on quarter, and gross margin of 18-21% down 2-5pp, as well as zero net operating profit to net operating losses of NT$4.0-4.8 billion, the company said at a July 30 investors conference.

The decrease in third-quarter business will be due to relatively high cost structure arising from an insufficient operating scale, HTC explained.

Its flagship New HTC One has been selling well in the US and China, HTC said. HTC's marketing strategies are to promote high-end models to build brand image and reputation and then sell mid-range models to expand operating scale to improve its overall cost structure, the company detailed.

HTC will launch several mid-range smartphones later in the third quarter and early fourth quarter and expects operations to rebound in the fourth quarter.

By: DocMemory
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