HTC stutters in Europe as revenues fall 27% to $3 billion

Taiwanese phone manufacturer HTC (TWSE: 2498) has announced its unaudited financials for Q2 2012, with revenues of NT$91 billion (around $3 billion), down 27 percent year-on-year.

Net income after tax was NT$7.4 billion (around $247 million), compared to $585 million in Q2 2011.

HTC did not elaborate on the figures, but analysts believe the company was hampered both by slow sales do to the European financial crisis and shipments to the US held up by customs inspections.

No euro-vision

Indeed, KGI Securities analyst Richard Ko told Reuters he expects sales of the firm's new Android-powered One series will be hampered by Samsung's Galaxy S III.

"In the high-end market, there are Samsung and Apple," said Ko.

"In the low-end market, even though HTC wants to gain traction in China, its phones are price uncompetitive.

"HTC's scale and margin are a lot lower compared to Samsung and Apple. It will see much pressure in the short to medium term."

HTC's results come hours after Samsung forecasted a 79% profit surge to $5.9 billion in Q2 2012.

[source: HTC]