HTC sees Q3 revenue sliding as much as 30,missing forecasts

The company also indicated a weak outlook for profit margins.

8220;Our overall gross margin has been impacted by a relatively higher cost structure,lack of economy of scale and certain provisions needed to facilitate the clearance of aging products,8221; it said in a statement.

HTC said it expects revenue this quarter of T50 billion 8211; T60 billion 1.7 billion to 2 billion,below an average forecast of T75.65 billion from 22 analysts polled by Thomson Reuters I/B/E/S. It reported revenue of T70.7 billion in the previous quarter and T70.2 billion a year ago.

HTC has often disappointed with its earnings over the last several quarters. Second-quarter net profit came in at just T1.25 billion,far below forecasts and following a record low in the first three months of the year when a shortage of camera components set back the launch of the HTC One.

A planned marketing blitz,which includes enlisting actor Robert Downey Jr. for a reported 12 million to star in its ad campaigns,is expected to weigh on profit margins and analysts remain wary about the company8217;s longer-term prospects as Samsung and Apple have much deeper pockets to develop new products.