HTC cuts revenue forecast on product delays, sluggish shipments

HTC made a drastic about-face in its 2009 forecast. The company said it now expects revenue for the year to fall by a low to mid-single digit percent, a reversal of its earlier prediction of growth of around 10 percent. The company blamed product delays and unexpected slowdowns in unit shipments.

"Our momentum in the second half of this year may not be as strong as we initially thought it would be," HTC CEO Peter Chou said during a call with analysts, according to Reuters. "The number of mid-tier smartphones we're pushing out this year will gradually increase, which will push down revenue. Momentum on both the Windows Mobile and Android platforms are also turning out to be weaker than expected." It is unclear what specific handsets might be delayed.

HTC said it will increase its operating budget to above 15 percent this year, up from 13.5 percent previously, as it looks to compete with heavy hitters in the smartphone arena such as Apple and Nokia.

The company beat analysts' forecasts in the second quarter earlier this month, and had a net profit of $197.1 million. At the time, the company did not provide guidance, but said it expected full-year shipments to be 20 percent higher than it had previously predicted because of the popularity of its smartphones.

For more:
- see this Reuters article

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