HTC reports continued sales declines, One X underperforming

HTC, the Taiwanese manufacturer that seemed like it was doing everything right last year by posting up 6 consecutive months of record revenue in 2011, seems to have entered a bit of a funk.

Even with the launch of its flagship One X, HTC’s May sales were down approximately $1 billion, which is a 26.13% decrease from May 2011. HTC cites an inventory write off and lower than expected sales in Europe and the US.

“While our checks indicated positive sales trends for HTC’s new One series smartphones, overall weaker sales in Europe, a charge to clear older inventory, and U.S. Customs delays led to softer Q2 sales,” said Canaccord Genuity analyst Mike Walkley. “With our checks indicating strong initial HTC EVO sales at Sprint, we anticipate an improving One Series sales mix in Q3/12 that should have a positive impact to gross and operating margins.”

With HTC One X coming back in stock at AT&T after its hang-up at customs, hopefully sales will start to get the kick-start they need to get HTC back on track.

source: BGR