8 Jun 2012

Smartphone shares down after lower profit forecast

12:26 pm on 8 June 2012

Shares of smartphone maker, HTC, have fallen 7% on the Taiwan Stock Exchange after the company lowered its sales and profit forecast for the second quarter.

HTC now expects revenue to be 13% lower than its initial projection.

It also cut its projection for operating profit margin to 9% from 11%.

HTC has experienced slowing demand from Europe, while a patent dispute has resulted in a delay in the launch of its new models in the United States.

Analysts say it has also been hurt by the growing competition in the sector.