HTC forecast a further drop in results for the fourth quarter, as the company struggles to gain a foothold in the smartphone market. Revenue is expected to fall to around TWD 60 billion in the last three months of the year, versus a reported TWD 70.2 billion for Q3. The gross margin is forecast at around 23 percent, down from 25.0 percent in the previous quarter, and the operating margin will fall to 1 percent from 7 percent the last quarter. In the third quarter, revenues halved compared to a year earlier, and operating profit plunged to TWD 4.9 percent from TWD 20.2 billion. The company also took an impairment charge of USD 40 million on its investment in OnLive. In a presentation, HTC said it continued to grow in China and see success with flagship phones in the US and Japan, while the EMEA and south Asia regions needed more spending to build brand awareness and distribution. The company did not release figures on units sold or prices in Q3.
