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.