April 16, 2014

HTC Q2 profit down 83% year on year, better than Q1 2013

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When I think about HTC, I think about classy phones like the HTC One and several others from the past few years. It’s a known fact that HTC rarely fails to impress people with their amazing smartphones – at least in terms of user experience. But lets talk about the sales – an area that HTC has struggled with for more than a few quarters.

HTC’s quarterly results are out and its net profit plummeted 83% year on year with $41.6 million. Ouch, right? Yet, it is better than last quarter result, which is the worst in their history; only $2.8 million. Have a look at Q2 2013 results:

Taoyuan, Taiwan – July 5, 2013 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announces unaudited consolidated results for 2Q 2013. For the second quarter of 2013, total revenues reached NT$70.7 billion ($2.4 billion). Unaudited operating income was NT$1.05 billion, net income before tax was NT$1.52 billion, net income after tax was NT$1.25 billion (US$41.6 million), and unaudited earnings per share after tax were NT$1.50 based on 831,227 thousand weighted average number of shares.

It seems the HTC One would have rescued HTC from the dark corner, but still they are way behind. The competition is really tough right now; HTC One is face-to-face with smartphones like the Galaxy S4, Galaxy Note 2 and the iPhone 5.

Analyst pointed out that HTC’s biggest weakness is their marketing strategy, even Peter Chou said that their marketing budget is the reason Samsung is killing them. According to a report, they also appointed Robert Downey Jr.- one of the famous actors out there – as their brand ambassador. Let’s see if Iron Man can save HTC.

HTC One Mini is in the pipeline as well, and we might see some more phones from the manufacturer in near future. In Q1 2011, HTC profit was $511 million, and in Q1 2013, just $2.8 million; so it gives a clear picture that the Taiwanese manufacturer was going through a really critical stage.

Do you think HTC can come back in the game with record profits? Tell us about your thoughts in the comment box below.

Source: WSJ

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