Photo: Steve Kovach, Business Insider
HTC is in a lot of trouble.It just slashed its revenue guidance for the fourth quarter and it’s scrambling to undo its acquisition of S3 graphics. It bought S3 for patents to fight Apple, but it turns out those patents are worthless.
Keep an eye on this company. It could head south quickly. Samsung is fast becoming the dominant Android phone seller. Nokia is Microsoft’s favourite partner. And Motorola is about to be a division of Google.
Unless Facebook can offer a killer phone OS for HTC, it might be total screwed.
Here’s Bloomberg on the revenue guidance cut:
Fourth-quarter revenue will be approximately the same as a year earlier, when it was NT$104 billion ($3.4 billion), the Taoyuan, Taiwan-based company said in an exchange statement today. Last month, HTC forecast sales to range between NT$125 billion and NT$135 billion. Sales will slow quarter-on-quarter for the first time in almost two years.
A $300 million purchase of S3 Graphics Co. also will be reevaluated after the target company lost a patent-infringement case against the iPhone maker earlier this week, HTC said today.
And for more analysis of why this is troubling, check Tero Kuittinen at Forbes.