HTC Cuts Sales Target

It seems like HTC still keeps its streak of not good market performance. After announcing a 70% year on year drop in profits and a 35% year on year decline in revenues for the beginning of 2012 the news for the Q2 of 2012 is not going to be better, just vice versa.

Today the manufacturer announced it has decreased the revenue expectations by 13.3% with the new revenue target for Q2 2012 set at $3.03 billion. The causes for the sub-par performance are the lower sales in Europe and the customs problems in the US.

That’s not all; during this quarter the Taiwanese company also wrote off same of its last year’s inventory that takes its toll on the bottom line.
And as for the good news, the one-time expense should positively influence on HTC’s long-term performance. The company announced that the consolidated sales for May have decreased and when compared with May 2011 they were down 26%.