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HTC revenue down 58% as struggles against Samsung & Apple continue

HTC's busy second quarter earned the company $91.04 billion (£58.32bn) in revenue, as well as net profits of $7.4 billion (£4.74bn), but that was a 58 per cent drop in profit from last year.

The report marked HTC's third consecutive quarterly decline, thanks to stiff competition from Apple and Samsung. HTC experienced a 70 per cent drop in this year's first quarter, following a 26 per cent drop in the fourth quarter of 2011.

During the quarter, the mobile manufacturer rolled out its HTC One line and its Desire series, as well as the regional HTC EVO 4G LTE and HTC Droid Incredible 4G LTE. The company also launched HTC Connect, its wireless audio and video programme for HTC devices.

The phone manufacturer touted its launch of the Desire V in China, where "growing brand awareness, strong operator partnerships and increasing retail presence," are poised to make China a key growth driver, an HTC press release said.

Since the One line launched, Asian regional sales met expectations, along with the successful launch of the HTC J in Japan.

Still, HTC lags behind in the smartphone market, which, as of last week, was dominated by Samsung. Compared with the South Korea-based company's 52.1 million shipments during the last quarter, Apple sold 26 million, followed by HTC with 11.6 million. Motorola, Nokia, and RIM rounded out the list, dropping as low at the BlackBerry maker's 7.4 million shipments. Rival Asian firm ZTE is on the rise, enjoying staggering year-on-year growth of 300 per cent as of Q2.

Looking forward, HTC expects third-quarter revenue to land between $70 and $80 billion (£44.8bn and £51.25bn respectively), with a gross profit margin around 25 per cent and an operating margin falling near 7 per cent.

HTC hit a few snags last month when Apple's patent complaint held up US shipments of two HTC device. The company also confirmed it was shutting down operations in South Korea as it continued to struggle against Samsung, and warned of further potential closures in Europe.