HTC Corp. is about to enter the Bangladesh smartphone market in hopes of competing with local brands. (Photo : Reuters )
Taiwanese smartphone manufacturer HTC recently announced that it will be cutting its revenue projection for the second quarter of 2015. HTC cited the continuing deterioration of its device sales as the main reason for the decision to lower down its sales expectation.
HTC released a statement saying, "The change for revenue outlook is due to slower demand for high-end Android devices, and weaker than forecast sales in China."
According to CNet, the recent announcement from HTC will break the company's four quarter streak in terms of profits. HTC highlighted that release of high-tiered devices like Apple's iPhone 6 and Samsung's S6 has greatly affected the sales performance of its own devices.
HTC is expecting a massive drop in its revenue. HTC initially projected a second quarter revenue of around $1.48 billion and $1.56 billion, unfortunately due to poor sales performance, the company now expects between $1.06 billion and $1.16 billion.
According to Wall Street Journal, low-cost smartphone manufacturers like China-based Xiaomi have grabbed much of HTC's sales market especially in the South East Asian region. Aside from stiff competition coming from industry giants such as Apple and Samsung, the emergence of the mid to low-range smartphone manufacturers has caused a serious blow to HTC's own market base.
Some industry analysts also pointed HTC's flagship smartphone One M9's lack of innovation as a reason for the smartphones low sales output.
Currently, in order to broaden its market, HTC is slowly expanding to the virtual reality industry. The company recently released the HTC Vive virtual reality headset. The product was developed by HTC along with Valve and the headset uses Steam VR input and tracking technologies.
