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Taiwan handset maker HTC Corp. (2498.TW) said Friday it expects its third-quarter revenue to fall 41%-48% from a year earlier, reflecting the pressure that intensifying competition and a slowing global economy is putting on its sales in key markets such as the U.S. and Europe.

HTC said it expects its revenue for the three months ending Sept. 30 to total 70 billion New Taiwan dollars to 80 billion New Taiwan dollars ($2.33 billion-$2.67 billion), down from NT$135.80 billion a year earlier, and a gross profit margin of around 25%, compared with 28%.

It expects a third-quarter operating margin of around 7%, down from 14.9% a year earlier, the Taoyuan-based company said.

Earlier this month, HTC reported its unaudited second-quarter net profit fell 58% to NT$7.40 billion as the smartphone maker continued to lag behind industry leaders Apple Inc. (AAPL) and Samsung Electronics Co. (005930.SE).

Write to Lorraine Luk at lorraine.luk@dowjones.com

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