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Taiwan’s HTC Reports 83% Drop in Q2 Profit

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Taiwan smartphone maker HTC Corp. reported an 83 percent drop in second quarter profit amid intensifying competition in the smartphone market.

HTC said Tuesday its profit totaled 1.2 billion New Taiwan dollars ($40 million) on revenues of NT$70 billion in the three months through June.

The company predicts revenue to drop to between NT$50 billion and NT$60 billion in the third quarter as high-end smartphone sales appear to have reached their peak.

Rivals Apple Inc. and South Korea’s Samsung Electronics Co. have felt similar pressure as the high-end handset boom gives way to growing demand for mid-range models.

HTC became the first maker of smartphones based on Google’s Android software in 2008 and its sales then surged. But they began a sharp decline in the second half of 2011.

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