HTC surprised many yesterday by cutting its Q4 revenue forecast to show no growth over the same quarter a year ago. It had originally forecast sales up to NT$135 billion (US$4.4 billion) but now expects them to fall around NT$104 billion (US$3.4 billion). It will be the first time in two years that HTC’s revenues have not grown quarter-on-quarter.
HTC cited both increased competition from Apple and Samsung as well as a weakening global economy as reasons for its downturn. It added that it expects to return to growth in the first half of next year. It is likely banking on devices such as the rumoured HTC Quattro tablet, HTC Edge, HTC Ville, and HTC Zeta with quad-core processors and LTE connectivity to help turn the tides.
In a separate filing, HTC indicated that it would would reevaluate its planned purchase of S3 Graphics Co in light of a court decision that found that Apple does not violate graphic patents owned by S3. “In light of a change in the ITC final ruling, HTC will work closely in good faith with VIA Technologies and WTI Investment International to conduct holistic re-evaluation of the S3 Graphics acquisition,” it said in the statement. S3’s patents had been the key reason for the acquisition.