Smartphone maker HTC could see flattening sales this summer, despite May being the company’s best month all year, according to a note to investors published by Citigroup Global Markets analyst Kevin Chang on Wednesday.
“We expect HTC shipments to peak in May, stay at a similar level in June and start to decline in July,” he wrote.
Citigroups’ report comes just a day after HTC revealed it’s consolidated revenue had increased by 48 percent up to $969.4 million from April thanks to the release of the flagship HTC One (review). Chang’s report noted that half of the Taiwanese company’s sales this month were thanks to the One, of which the firm reportedly shipped about 1.2 million units. The investor’s note warned that One sales for June will only reach 1 million units.
Meanwhile, a separate note published on Tuesday by Morgan Stanley Taiwan warned that HTC needs to repair structural issues plaguing the company before it can succeed in the smartphone market. The Taiwanese company has been bleeding executive staff members recently, with Chief Operations Officer Matthew Costello being the most recent exec to resign from HTC.