HTC shares sag
7% losses in market as company announces zero growth in Q4 2011, compared to Q4 2010
HTC shares have tumbled 7%, the maximum allowed in the market in one day, after the company slashed its growth forecast, according to the BBC.
HTC announced on Wednesday that it expected to see little change in revenues for the final three months of 2011, as compared to the final three months in 2010.
The company had previously predicted a 20% to 30% growth and is blaming increased competition and weakening demand for its devices on the forecast slump.
The company warned that Q4 2011 revenue was slowing in October, predicting $4.1bn to $4.4bn, compared with $4.46bn in the previous three months.
HTC did not give a specific forecast for Wednesday's further downward revision, but said it predicted zero growth when compared to the same period last year. HTC's revenue in the last three months of 2010 was $3.5bn.
The company has predicted that revenues will look up in the first half of 2012.
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