Android Phones

HTC expecting to see falling revenue this year

August 3, 2009 | by Robert Nelson

HTC

HTC expecting to see falling revenue this year

Despite what appeared to be good time for HTC, which has come in part due to the success of Android, they have recently announced that they are expecting their revenue to fall during the remainder of the year.

“Taiwanese handset maker HTC Corp. said it now expects its revenue to fall this year because of delays in product launches, a bigger-than-expected fall in contract orders, and lower-than-expected sales in China.”

According to reports, HTC is expecting a “low- to mid-single-digit” decrease and have blamed product launch delays, a fall in contract orders and lower than expected sales. But with that, the analysts are suggesting that the decline in HTC revenue is coming from increased competition thanks to the likes of Motorola and Sony Ericsson.

Based on reports coming from HTC, they are expecting their third-quarter revenue to fall somewhere in the NT$34 billion and NT$36 billion range, which is down from NT$37.86 billion in the same quarter last year.

The falling revenue is also being blamed on the fact that the average selling price of an HTC phone has fallen from $381 last year down to $358.

Granted, this is not the best news for HTC, however considering they went from the only Android handset manufacturer to being one of a few this decrease in revenue is not all that surprising.

[via Wall Street Journal]