Apple's iPhone slams growth at rival HTC
Shares in HTC, the world's biggest maker of Android smartphones, fell sharply today as it warned that it now expects no growth in fourth-quarter revenues.
Previously, the company had predicted final-quarter growth of between 20% and 30%.
The sharp downgrade reflects the fact that after HTC is losing market share to Apple's iphone and Samsung's Galaxy.
HTC shares fell 7% - the maximum permitted on the Taiwanese stock market - to a 16-month low.
Analysts said HTC did not have a strong enough pipeline of new models aimed at the European and North American markets to catch up with its rivals. They reckoned HTC will now ship two million fewer phones than expected between October and December.
"In terms of content, HTC is incomparable to Apple; in terms of performance and price, HTC is also no better than Samsung," said Yuanta analyst Vincent Chen, noting HTC's disappointing sale of high-end phones in the US, a market that accounts for around half its revenue.
"This new guidance takes us by complete surprise and is at odds with recent discussions we have had with distribution channels, especially in Europe," said Sanford Bernstein's Pierre Ferragu.
HTC said it still expects to grow revenues in 2012.
