UPDATE 2-HTC warns of Q3 revenue slide, turnaround prospects bleak

Tue Jul 30, 2013 7:36am EDT
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* HTC says competition fierce in mid to high-end segment

* Company has been hit by delayed launch of flagship model

* Margins hurt by higher cost structure, lack of scale

* Company sees improvement in Q4

* But analysts think immediate turnaround unlikely

By Michael Gold and Faith Hung

TAIPEI, July 30 (Reuters) - Taiwan's HTC Corp said third-quarter revenue could fall as much as 30 percent from the previous three months, far worse than expected and underscoring deepening troubles for a smartphone maker with little prospect of an immediate turnaround.

A delayed launch for its much-hyped flagship phone, the HTC One, has only exacerbated inventory troubles and highlighted its lack of scale when compared to Samsung Electronics Co Ltd and Apple Inc at a time when the market for high-end phones is said to be approaching saturation.

HTC said it expects revenue this quarter of T$50 billion to T$60 billion ($1.7 billion to $2 billion), far below a market consensus of T$75.65 billion and its previous quarterly revenue of T$70.7 billion.   Continued...