HTC profits slump even further

HTC profits slump even further

If you thought the One would be… One handset to turn HTC’s profits around, you’d be wrong so far. Bloomberg has recently reported that the Taiwanese companies woes still haven’t ended with a new record low of NT$85 million (£1.83 million). Just to put things into perspective, this is its 6th straight quarterly decline.


The current outlook doesn’t look good at a 98% decline over their last report, especially when the average estimate by 19 Bloomberg analysts thought the company would have posted revenues of NT$600 million (about £13.5 million). Of course, the biggest factor by far has been the delay in getting the HTC One to market. Now that they’ve finally succeeded, and the One is starting to show up in both shops and people’s hands, it remains to be seen whether they can sell enough handsets to make an impact before the Samsung’s Galaxy S4 ships. Most reviews have rated it highly, but the fact that shipping dates slipped by at least a month due to problems with sourcing components for its new ultrapixel camera (remember the one with bigger pixels that allow more light in?) makes the upcoming fight for it to gain relevance that much harder.

“These numbers show the production shortage really is that bad, and my sense is that it won’t get much better in the second quarter because many of those issues continue,” said Dennis Chan, an analyst at Yuanta Securities Co. in Taipei, who recommends selling the stock. “For smartphones, timing is everything and the delay means they lose that timing.”

The Chief Marketing Officer Benjamin Ho, who came on board in the back end of november this year advised about the companies struggle, with production volumes for the camera ramping up through to the end of April. It won’t help matters that HTC is now being treated as a tier 2 customer when it comes to ordering RAM.

Still, they have the First releasing soon, and the long rumoured M4 could help turn things around. HTC has always posted up a profit since it listed publicly in 2002. Lets hope this particular ship is still floating next year.

 

Source: Bloomberg

 

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  • Andrew McCreath

    I’m not sure why they slumped… I went out and bought an HTC One at the weekend ;)

  • Typical, anti HTC bias that has been here for ages…..HTC One, finest Android phone on the market……Pathetic article with a pathetic picture.

    • patch

      its a samsung site now …..

      • Anonymous

        I wholeheartedly disagree – despite the recent news, this site actively reports on HTC news more than pretty much other tech site, and at least as much as Samsung, Apple, Sony and the like.

        Plus, these numbers surely cannot have anything to do with HTC’s recent launches, as the financial figures won’t have taken any of that into account just yet. It’s all for up to the end of the financial year, before the likes of the HTC One could make an impact.

        I certainly hope that they see an improvement during the next quarter.

        • patch

          this site never gives samsung a bad press just jumps on other manufactures ASAP… apple lock screen issues was big news but when samsung devices had the same issues nothing..??? the site tries to put apple/HTC/windows down as much as it can …

          i wouldnt mind if the phones are rubbish and didnt sell well but christ what more do they have to do …

          • As you may have noticed, I’m not an Apple evangelist, but they have a pretty good track record recently of fixing their security based issues pretty quickly.

            I bought the original Galaxy S when it came out. whilst it was a good phone for its time, I made the personal decision that I wanted a better camera on a phone and that I just will not use kies again. Its not a statement on any other manufacturers program, but if you’ve used kies in anger… well, enough said.

    • Anon

      I don’t see the issue? All the issues have been well reported by other sites too and is not made up or anything. Only issue seems to be you like the phone and do not agree with what has been said, that seems more of a bias to me than anything in this post. Same happens with Apple, something bad is said about Apple and all of a sudden everyone is making stuff up and anti Apple. If you say this site is anti HTC why did they give the HTC One a great review?

    • Martin

      This is not an Anti-HTC post, and I certainly wouldn’t say CSP is an anti-HTC site either. Been reading the posts here for years and HTC gets as much press as Samsung.

    • That’s an interesting perspective. I guess you weren’t aware that I had an HTC One X+ that was my main phone for quite a while?

    • Simon Allum

      Highly interesting view. I personally have had several HTC review models and whilst like any handset they have some minor faults for the main they are excellent devices.

      It would be remiss for any of us to say that everything in the garden is rosy particularly when the CEO of HTC admits that it is not. Reporting the facts is not anti HTC.