HTC predicts flat or lower revenue and margins in Q1 this year
After being one of the hottest phone makers for a while, HTC’s fortunes started declining last year and 2013 is not starting so well for it either. The revenue for the first quarter of this year is expected to be between $1.7 billion and $2 billion, compared to $2 billion for the previous quarter and $2.2 billion for Q1 of 2011. Analysts (polled by Thomson Reuters) expected $2.1 billion in revenue for Q1 this year.
Profits will fall even more as HTC expects its gross margin for Q1 2013 to be 21-23% (it was 23% in Q4 2012). Operating margin will similarly either stay at 1% (same as Q4 2012) or fall to 0.5%.
Now we can see why HTC’s chairman was so excited to show off the yet unannounced M7. The official announcement should happen in NYC on February 19 (we’ll be covering it live).