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HTC continues to lose money; spills $62 million in red ink for Q1 vs. profit the previous year

Posted: , by Alan F.

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HTC continues to lose money; spills $62 million in red ink for Q1 vs. profit the previous year
HTC is in a slump, but there does seem to be a way out. For the first quarter of the year, a period that included some HTC One (M8) sales, the Taiwan based manufacturer had a net loss of $62 million. That compares with a $2.5 million profit made by HTC in the prior year. Revenue, at $1.10 billion, fell short of last year's $1.14 billion, and also did not meet analysts' estimate of $1.12 billion to $1.18 billion for the period.

The second quarter is expected to be a much better one for HTC since it will include more contributions from the HTC One (M8) and the HTC Desire 816. The quarter is expected to turn a net profit for HTC in the range of $60 million to $81.5 million. If HTC can pull this off, it would be a very positive sign that the worst is over for the manufacturer.

Despite the red ink for the January through March period, there were some highlights in the period for HTC. The Europe, Mid East and Africa region saw strong sales of the HTC One (M7), HTC One mini and HTC Desire 500. The HTC One (M8) "dominated" in Taiwan, according to HTC. In China, there was momentum for the HTC One (M8) and the HTC Desire 816, while in India there was momentum for the HTC One (M8) and HTC Desire handsets.

Part of the problem for HTC, especially in the U.S., remains lack of a strong marketing plan. Having actor Gary Oldman repeat the phrase "Blah, Blah Blah," is not going to sell handsets, no matter how strong the pre-launch hype. HTC also has tough competition. While Samsung has a very strong challenger with the Samsung Galaxy S5, the LG G3 is expected to raise the bar with a QHD resolution screen. But HTC might fight back. There is speculation about an HTC One (M8) prime which would feature a 5.5 inch QHD screen, a Snapdragon 805 processor and an 18MP Duo camera.


source: HTC via GSMArena

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34 Comments
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posted on 06 May 2014, 23:54 7

1. Anshulonweb (Posts: 365; Member since: 07 Feb 2014)


lets hope htc gets back on track..... htc m8 and desire 816 are really good devices...

posted on 07 May 2014, 00:25 4

11. itsdeepak4u2000 (Posts: 2866; Member since: 03 Nov 2012)


They need to do something like Moto G.

posted on 07 May 2014, 06:46 1

26. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


They need to give a name which public will remember

Like the Galaxy S4. S3. S2.S5.

iP4 iP5 ip3

It needs a brand recognition

posted on 07 May 2014, 08:25 1

28. The-Sailor-Man (banned) (Posts: 1095; Member since: 25 Mar 2014)


They need to stop selling ALUMINUM, but smartphones.

No matter what "hype" make the apple propaganda about the M8 POS, ppl are on the market NOT for ALUMINUM.

posted on 08 May 2014, 10:31

33. true1984 (Posts: 593; Member since: 23 May 2012)


because no bought the m8 right? i think you're confusing people for you.

posted on 06 May 2014, 23:55 21

2. express77 (unregistered)


That's what happens when flagships comes with 4mp camera.

posted on 06 May 2014, 23:57 1

4. sarb009 (Posts: 294; Member since: 15 Jun 2011)


Lol!!

posted on 07 May 2014, 00:17 2

10. KillerKeyboard (Posts: 307; Member since: 21 Nov 2013)


Lels. The 4mp Camera Law.

posted on 07 May 2014, 05:33 1

24. likemorethan1 (Posts: 48; Member since: 22 Aug 2013)


lol well let's hope that there is a M8 Prime with 13 ultrapixel camera then

posted on 07 May 2014, 08:29

29. The-Sailor-Man (banned) (Posts: 1095; Member since: 25 Mar 2014)


.....and huge bezels, and mediocre specs and features compare with the competition, and two nonsense ugly cameras, and heavyly sealed "design"

posted on 06 May 2014, 23:57 8

3. maherk (Posts: 1208; Member since: 10 Feb 2012)


That's what they get for keeping faith yet again with their marketing team, that bla bla bla isn't as cool as you might thought. The camera has nothing to do with it, I played with the M8 couple of times in t-mobile store, I did end up with an S5, but I loved everything about the M8 (except for the home button placement), but their marketing team sucks big time. Take care of that, and put more money into your build control team and that should lead to something positive.

posted on 07 May 2014, 01:24 2

16. 0xFFFF (Posts: 3745; Member since: 16 Apr 2014)


While HTC marketing is terrible, that 4MP camera is even more terrible :)

I agree that HTC really mucked up the front panel of the phone. They had plenty of space for three capacative buttons, but decided to use onscreen buttons... reducing effective screen size/resolution. Not really so great.

posted on 07 May 2014, 08:31

30. The-Sailor-Man (banned) (Posts: 1095; Member since: 25 Mar 2014)


Not the markitung is the HTC's problem.

The problem is that they have NOTHING for marketing.

Or ALUMINUM??? LOL

posted on 07 May 2014, 00:02 4

5. shamatuu (Posts: 151; Member since: 02 Nov 2011)


At least there not Blackberry which have less than 1 percent for market share of OS.

posted on 07 May 2014, 00:06 9

6. NokiaFTW (Posts: 2058; Member since: 24 Oct 2012)


HTC had the chance to absolutely blow every other Android OEM's flagships out of the water if they had put up a better camera. Even a normal 8MP sensor with good optics would have been enough. But they chose to stick with ultrapixel gimmick. Hence, they'll lose the battle again this year to the S5, the G3 & the Z2.

posted on 07 May 2014, 00:10

7. RaKithAPeiRiZ (Posts: 1384; Member since: 29 Dec 2011)


or they could have added 2 8mp sensors or the 13-20mp lenses sony sells , HTC is collecting some of their customer data from wrong sources , people care about specs , not refinement

posted on 07 May 2014, 00:14 19

9. KillerKeyboard (Posts: 307; Member since: 21 Nov 2013)


^
HTC (Had The Chance) =D

posted on 07 May 2014, 00:26 3

12. NokiaFTW (Posts: 2058; Member since: 24 Oct 2012)


LOL +1

posted on 07 May 2014, 01:05 11

15. express77 (unregistered)


HTC - Hate The Camera.

posted on 07 May 2014, 02:43 4

20. 0xFFFF (Posts: 3745; Member since: 16 Apr 2014)


or Half The Camera

posted on 07 May 2014, 02:10 5

17. Miracles (Posts: 560; Member since: 31 Aug 2013)


HTC - Hate Tim Cook

posted on 07 May 2014, 02:23 5

19. KillerKeyboard (Posts: 307; Member since: 21 Nov 2013)


HTC - Hate Those Commercials

posted on 07 May 2014, 08:33

31. jroc74 (Posts: 5192; Member since: 30 Dec 2010)


Them losing money has nothing to do with the camera, or a feature....

Samsung dominates because they also do low and mid range phones. HTC does too....but somehow they arent making any progress with it.

Marketing is probably HTC's biggest problem. I remember when the Rezound was out....many ppl didnt like the ads, commercials for it. It focused more on Beats headphones, Beats music app than the phone.

Another thing we have to remember is with Samsung making so many components of phones....they should in theory loose less money than others since they are not purchasing the parts but making them.

posted on 07 May 2014, 00:11 2

8. KillerKeyboard (Posts: 307; Member since: 21 Nov 2013)


If they still lose substantial money this Q2-Q3, well... they're really in deep excrement.

posted on 07 May 2014, 00:43 3

13. AJagtiani (Posts: 466; Member since: 24 Apr 2014)


R.I.P HTC.

posted on 07 May 2014, 00:49 3

14. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)


Not yet.

posted on 07 May 2014, 02:12 3

18. Miracles (Posts: 560; Member since: 31 Aug 2013)


Nooooo! They honestly make some great devices...just miss something with every release. M7- microSD M8- Camera.

posted on 07 May 2014, 04:48 3

23. james.blunt.1973 (Posts: 38; Member since: 15 Dec 2013)


M7 didn't have a proper camera too...

posted on 07 May 2014, 06:42 1

25. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


Rip NWP

HTC makes quality phones than cheap plastic Nokia

posted on 07 May 2014, 03:48 1

21. Antonyjoseph (Posts: 215; Member since: 06 Apr 2013)


Looks like other than Apple and Samsung no one else is really making profits in the mobile space.

posted on 07 May 2014, 04:22 3

22. GreekGeek (Posts: 845; Member since: 22 Mar 2014)


Mediocre Gimmicks (Ultrapixel, Dual cam etc) coupled with higher pricing vs the rest of the big players plus we have the atrocious marketing decisions and strategies (Downey Jr, Gary Oldman and their lame ads) We have a recipe for DISASTER folks!

They are barely surviving and I would expect their demise within 3 years or so

posted on 07 May 2014, 07:48 1

27. AfterShock (Posts: 2971; Member since: 02 Nov 2012)


Start from top down, get rid of CEO.
Don't wait any longer, don't do like BB did an let CEO go unchecked against reality for so long.

posted on 07 May 2014, 11:20

32. PBXtech (Posts: 983; Member since: 21 Oct 2013)


$62 million is small for a company of this size. All it takes is for one quarter with good sales volume to change that. All these people saying HTC is done don't realize how big of an OEM they are. Big companies can absorb losses on this scale, as long as they don't do it for every quarter.

posted on 08 May 2014, 15:23

34. mrblah (Posts: 549; Member since: 22 Jan 2013)


Good riddance, all copy cats will fall. I think the S5 is going to be a huge flop also. I used to like HTC when they were original, now they are sad.

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