HTC Q2 financial results reported; Q3 revenue estimates lowered

HTC announced today their third consecutive quarter of declining profits in conjunction with the release of their second quarter audited earnings report. HTC brought in approximately $3.0 billion in revenues to go with a gross margin of 27% and an operating margin of 9%. This yielded after tax net income of $247 million, down 58% compared to the first quarter of 2012.

HTC holds about 14% of US smartphone market share, which is not bad in the face of stiff competition from Apple and Samsung. The situation is not as positive elsewhere, with market share in South Korea reportedly falling below 1%, prompting HTC’s withdrawal from South Korea. That was preceded by HTC’s withdrawal from Brazil. HTC’s market share was not helped by Beats Audio, which HTC acquired and then sold back half its stake in less than a year’s time.

For the immediate future, HTC expects revenues to be in the $2.5+/- billion range for the third quarter with a 25% gross margin and 7% operating margin. For comparison, in the third quarter of 2011 HTC pulled in $4.5 billion in revenues.

source: Android Central