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HTC Profits Fall Nearly 58% On U.S. Customs Ban, Weak Sales

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HTC has just reported its second quarter finances, and they're terrible: Profits slipped 57.8% on the same period last year. In fact HTC reported that consolidated sales for June were down $30 billion on the same period last year, 33.4%, and flat from May. The poor performance that lead to an equivalent quarterly profit of just $248 million is being blamed not only on the U.S. customs hold on HTC smartphone imports--a case HTC lost against Apple--but also on weak smartphone sales in Europe, which is a far trickier problem for the Taiwanese firm. HTC has been consolidating its product releases to concentrate on fewer, better-branded handsets and there have been recent rumors it's interested in making its own smartphone processors with ST-Ericsson in a further attempt to emulate Apple strategy.

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