Rivals threaten sales of HTC

TAIPEI-Taiwanese smartphone maker HTC may not present sales growth in the third quarter with the brightness around your head unit being eclipsed by new products from rivals with larger muscles, like Apple and Samsung.
The strong sales of the latest version of HTC One, as well as the colorful Butterfly line variety, boosted the second-quarter net profit, which rose to 1.25 billion Taiwanese dollars (US $ 41,63 million), up from record low the previous quarter, when the camera components shortages delayed the release of products.
The value of the profit, however, was below forecasts and analysts say that the growth of sales was susceptible to a short life. Sales for the quarter from July to September are expected to remain virtually unchanged compared to the previous quarter, with few new products about to hit the market.
"The HTC may have new products in the third quarter, but competition from Apple and other Chinese brands is fierce," said analyst Peter Liao, of Nomura Securities. "It will be difficult to maintain growth."
Analysts said that the fall of almost 25% in June sales of HTC compared with the same period last year is also a bad omen for the coming quarter.
HTC has launched a marketing campaign to increase the exposure of the brand strategy that must press the operating margins for the rest of the year, acknowledged the company in May.
The company should launch in August the cell One Mini, which has a 4.3-inch screen, in August, a month before the heavyweights Apple and Samsung launch new and updated products.
In addition to the intense competition, the HTC has seen several executives leave the company this year, including the Vice President of products Kouji Kodera. Company sources say that the matches have relationship with the disappointing launch of new products and a decline of 40 percent of the total sales in 2012.