Despite the strong display of the HTC One sales last month, new reports from analysts suggest that the Taiwan-based tech firm will not be as fortunate this month and the months to come.
According to a recent article from Taipei Times, the bleak future of the HTC One was predicted by Citigroup and Morgan Stanley Taiwan. Researchers from the two companies aired their concerns over the dependency of the company over developed markets. They stated that although the trend is very profitable for the past few months, it would hurt the firm in the long run.
Prediction of Citigroup
Kevin Chang of Citigroup said that June sales of the HTC One will remain flat and it will only replicate the May figures. But July will no longer be the case because a decline is at bay.
Chang attributed the strong HTC One sales for the past months were due to the weak performance of the company’s other devices. But he commented that the saturation in developed markets will soon result to a decrease in demand of the product. The low demand for the following periods this year will be triggered also by the impending launch of the rumored iPhone with a bigger screen, he added.
Morgan Stanley Forecast
On the other hand, Morgan Stanley Taiwan stated that HTC has to overcome its structural issues in order to gain more leverage in the very competitive smartphone market. The increase in sales last month was probably caused by the wider distribution and improved component supply of the company, said its analyst named Jasmine Lu. But now, the risks lie in the sustainability of its sales for the third quarter of the year, she said.
Lu concluded that the market gains of HTC in the US are not enough to drive growth because of the deceleration of the smartphone market in the country which is made worse by a higher mix of prepaid smartphones in the US without operator’s subsidies.