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See the best of Reuters photography. See more | Photo caption Arafat's Legacy A look at the life and legacy of Palestinian leader Yasser Arafat. Slideshow Space odysseys From the scientists on the ground to stunning views from space, a look at man's continuing exploration into the final frontier. Slideshow Taiwan HTC Q2 net lags forecasts as smartphone sales sag Tweet Share this Email Print Related News Samsung's Galaxy powers record $5.9 billion profit; euro a worry Thu, Jul 5 2012 Lowered outlook, new Apple fight send HTC shares to 2-year low Thu, Jun 7 2012 Related Topics Tech » A shop attendant arranges HTC phones in a mobile phone store in Taipei November 24, 2011. Credit: Reuters/Pichi Chuang TAIPEI | Fri Jul 6, 2012 4:14am EDT TAIPEI (Reuters) - Taiwan's HTC Corp (2498.TW), the world's fifth-largest smartphone maker, reported a 57.8 percent fall in quarterly net profit, missing forecasts, as European sales disappointed and U.S. sales were held up by customs inspections. Unaudited April-June net profit was T$7.4 billion ($247.7 million), the company said in a statement on Friday. That was down from T$17.52 billion in the same period a year earlier but up from T$4.47 billion in January-March. It did not elaborate. Earnings had been expected to drop to T$8.25 billion, according to a Thomson Reuters I/B/E/S survey of 21 analysts. Second-quarter revenue was T$91 billion. HTC last month cut its quarterly revenue target by more than 13 percent because of the European and U.S. sales outlook. Consolidated sales for June were T$30 billion, down 33.4 percent from the same month a year earlier and unchanged from May. HTC shares closed down 5.15 percent at T$322 before the earnings release, while the broader market .TWII fell 0.26 percent. 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