Taiwan-based handset maker HTC has cut its revenue forecast for the fourth quarter, reports Bloomberg. The anticipated drop in revenue, which could be as much as 23 percent for the quarter, is due to increased competition from Samsung and Apple, as well as the overall weak state of the global economy, the company said.
HTC expects its fourth quarter earning to be NT$104 billion ($3.4 billion), which is about equal to what they were a year ago. Even last month, HTC said that revenue would be closer to between NT$125 billion and NT$135 billion.
“Due to global macroeconomic downturn and market competition, the assumptions of 2011 Q4 financial forecast provided earlier are no longer applicable,” HTC said. The company expects revenue to pick back up during the second half of next year.
Samsung has become an increasingly prominent player in the Android handset market, which was previously a domain dominated by HTC. High-end devices from Samsung, like the Galaxy S II, and the Galaxy Nexus, have stolen the spotlight from HTC. Of course, Apple’s iPhone line, which remains the most popular line of smartphones in the US, has also played a role in HTC’s downturn. Needless to say, many be will be watching to see what HTC can deliver at the upcoming Consumer Electronics Show in January.
In addition to the revenue news, HTC also announced that it is re-evaluating its $300 million purchase of S3 Graphics, which was done in order to go on the offensive against Apple in a patent infringement case. Earlier this week, Apple was found to have not violated any of the S3 patents.