HTC Predicts Revenue Decline

HTC Corp., a Taiwanese handset maker, has released expectations that its revenue will drop this year due to delayed product launches, weak contract-order demand, and disappointing Chinese sales. Although it had once predicted a 10 percent increase in revenue, HTC now expects revenue to fall by a single-digit percentage amount.
 
Last year, HTC’s revenue increased 29 percent to US$ 4.65 billion, but growing competition on the part of companies like Motorola and Sony Ericcson, both in the process of incorporating Google’s Android operating systems into their handsets, has removed HTC’s biggest advantage.
 
HTC manufactures T-Mobile USA’s G1 phone, which makes use of the Android operating system, and is the world’s largest maker of phones that use Microsoft’s operating system. Apple has also proved to be a huge competitor for HTC, with its extremely popular iPhone dominating the smart-phone market and leaving little room for other phone companies to improve upon Apple’s winning formula.

HTC Handset (Image: Flickr)