HTC sees Q3 revenue falling as flagship sales slow down

Taiwan’s HTC has forecast that revenue in the July-September quarter will likely decline. The company braces for a leaner quarter after sales of its flagship phone the One M8 begin to taper off after a strong second quarter.   The One M8 faces a strong second round of competition from the LG G3 and in India, from the likes of Xiaomi, and then there’s Apple, which will be releasing its iPhone 6 in markets soon. Total third-quarter revenue is likely to fall between T$42 billion ($1.40 billion) to T$47 billion ($1.45  billion), HTC said, compared with T$47.05 billion in the same period of 2013. HTC is expected to hold a quarterly investor conference soon.   Gross profit margin in the third quarter is expected to be in the range of 22.5 to 23 percent, it said. HTC had previously reported higher-than-expected second-quarter net profit of T$2.26 billion ($73 million).   In a bid to reclaim some market share at the expense of the competition, HTC is now targetting the mid-range and budget segment with launches in India. The company is also expected enter new product categories, while the fate of its tablet line also hangs in the balance, with rumours of an HTC-produced Nexus 9 tablet gaining traction. It remains to be seen whether the once-formidable OEM can turn things around with a revitalised approach in the last two quarters of this year.   With inputs from Reuters