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HTC Sales Slump 40%

By Oonagh Reidy | Tuesday | 06/08/2013

From bad to worse: HTC sales slump 40% in July

The One maker announced revenue of NT$15.7bn (US$524m), a -37% drop compared to July 2012.

Sales also down almost 30% compared to June, marking the latest revenue slump for HTC in recent months. 

Last week, HTC announced second-quarter sales had fallen to A$2.6bn, while net profit tumbled to NT$1.25m. 

But worse still, it forecast 3Q sales to slump as much as 30% to NT$50-NT$60 billion.

HTC One Mini
It is now clear HTC hero phone,'One', is not enough to turnaround the struggling Taiwanese mobile maker's business,  struggling in the face of fierce competition from titans Apple and Samsung and Chinese vendors Huawei and ZTE. 

HTC are soon to be releasing 'One mini' in Australia, a 4.3" Android dual-core 1.4 GHz processor budget version of its big brother, that is selling well in OZ, a Telstra spokesperson recently told CN. 

However, a HTC spokesperson was unable to confirm to CN when the 'mini' will hit OZ, saying it is awaiting confirmation from HQ. 

According to IDC, HTC the first company to release an Android smartphone, once again failed to appear in the top 5 mobile vendors in the second quarter.

But all may not be lost.

IDC analysts say growth in the mobile market was partly driven by vendors from outside the top 5 who experienced "torrid shipment growth" including Alcatel and Huawei, meaning there is room for lesser known brands particularly in China. 

"Lower-priced smartphones continue to gain traction," says Ramon Llamas, IDC Mobile researcher. "There is ample opportunity for smartphone vendors with differentiated offerings."  

"We fully expect to see large-screen smartphones and other flagship devices establish a presence within the lower-priced smartphone segment as well."

If HTC can get it right with One Mini, it may capture ample share of this lower end segment of the market. 

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