HTC forecasts flat to worse performance in Q1

HTC expects revenues in the first quarter to remain flat at best or fall 17% at worst compared to the previous quarter, an outlook that is worse than third-party forecasts. HTC continues to lose revenues after it stumbled in the second half of 2011, and cannot regain market share as Samsung and Apple take over.

HTC forecasts Q1 revenue at $1.69 billion to $2.03 billion, while analysts earlier projected 4.5% larger revenue on average.

The phone maker’s gross margin will also remain either flat at 23% or decline to 21%.

Now, HTC is placing all hope in its upcoming M7 flagship, a device that should get announced on February 18th, and arrive earlier than rival Samsung Galaxy S III.