The mobile phone designer also blamed a slower-than-expected ramp-up of China’s 3G (third generation) mobile networks and the delay of a few smartphone models until next year for the revised forecast.
HTC now expects revenue for the full year 2009 to decline slightly compared to last year, worse than its previous guidance of 10 percent year-on-year revenue growth.
The company’s average selling price for handsets also declined during the second quarter to $358 per unit, from $364 per unit in the first quarter and $381 per handset in the second quarter of last year.
Market researcher IDC said on Thursday that stiff competition in the mobile phone industry and strong demand has caused a smartphone price war, with consumers set to benefit from lower prices. The researcher singled out Apple’s price cut on the iPhone 3G as a reflection of the trend that it expects to continue for consumers.
When Apple unveiled the iPhone 3GS in June, the company slashed the retail price of the original iPhone 3G to $99.
HTC said analysts have been overly concerned about pricing pressure on its products. The company said it plans to lead the drive to mid-tier smartphones and not let lower prices get in the way of user experience.