HTC predicts first ever quarterly loss, despite strong HTC One sales

By on July 30, 2013, 10:15 AM
htc, revenue, earnings, sales, htc one, profits, q3

HTC is expecting to post their first ever quarterly loss when it releases their earning figures for Q3 2013, with forecasted revenues in the range of NT$50 billion to NT$60 billion (US$1.7-2.0 billion), down from this quarter's NT$70.7 billion (US$2.3 billion). This provides the company with a gross profit margin of 18 to 21 percent, down from 23.2 percent this quarter, and an operating margin of 0 to -8 percent, down from 1.5 percent this quarter.

CEO Peter Chou blames the decline on having to clear aging products in their sales channel, as well as a higher cost structure for producing and developing smartphones. "Actions have been taken" by the company to improve in Q4, helped by their range of smartphones that are providing momentum for the struggling Taiwanese OEM.

HTC revealed that their flagship "hero" device, the HTC One, has been performing well in several regions including the United States, EMEA and China; it was noted that China especially saw the company regain high-end phone market share. The One has been selling better than HTC's flagship devices of last year, such as the One X, over the same period, which is a good sign for HTC regaining growth in the quarters to come.

Chou wants HTC to be "a strong player in the high-end segment", while he also teased that a range of upcoming mid-tier phones will be released at the end of Q3 and Q4 this year, alongside the One mini that's expected to start shipping at the end of this month. The company looks forward to a "brighter future" that will continue to bring customers the "best and most exciting" products.

User Comments: 5

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1 person liked this | MilwaukeeMike said:

It seems like HTC is just too small to compete with Apple and Samsung. Last year they were sued by Apple for Android patent infringement and their HTC One X was held up in customs for like 6 weeks. By the time it got through the Galaxy S3 had arrived complete with a huge marketing campaign. The S3 was just as guilty as the One X, but Samsung had the lawyers to defend it so Apple went after HTC.

Next comes the HTC One, which has gotten excellent reviews by every website who's touched one, but again they can't complete with Samsung who's got an S4 ad on everything from billboards to youtube to TV. HTC even had the One ready to sell before the S4, but they faced last minute delays and ended up only getting out a week or two before the S4.

It's too bad HTC can't afford to heavily market the One... they'd sell a lot more of them.

Littleczr Littleczr said:

MilwaukeeMike have you considered that the S4 is actually better then the HTC One. I mean HTC is pretty nice but I would rather get the S4, I have played with both of them.

Chazz said:

I'd rather get the HTC ONE for sure. It's an awesome phone, sadly.

MilwaukeeMike said:

MilwaukeeMike have you considered that the S4 is actually better then the HTC One. I mean HTC is pretty nice but I would rather get the S4, I have played with both of them.

I bought an HTC One, and I chose very carefully between that and the S4. After reading multiple comparisons online and many reviews on both I can say with confidence that 'better' is completely subjective. Each phone has it's ups and downs, and both are good enough that no owner of either is going to complain. However, I'd bet there are more HTC One owners who know about the features of the S4 than there are S4 owners who know about the features of the One.

I've said it on here before... if you use your camera a lot do not buy an S4 until you see how the One can turn your videos and pictures into a highlight video with no work at all. For some reason this feature isn't on a commercial anywhere, and I think HTC totally dropped the ball on marketing it.

Skidmarksdeluxe Skidmarksdeluxe said:

"Chou wants HTC to be "a strong player in the high-end segment".

There's nothing wrong with that apart from the fact it's a pretty limited market and eveyones a player. Appealing to the broad masses is a far better strategy imo.

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