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HTC scores a small profit in Q3 in spite of pessimistic expectations

Posted: , by Peter K.

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HTC scores a small profit in Q3 in spite of pessimistic expectations
When HTC released yet another disappointing financial report for July, it seemed like it's getting stuck in the shifting sands even more. Without a feasible prospect for a financial turnover, analysts and investors predicted that the Taiwan-based manufacturer will most probably continue its downward plummet well throughout the fiscal Q3 2014. Fortunately for HTC, the downfall is not as drastic as initially expected – the company's earnings for the period are less than the Q2 2014 ones, but a little better than the Q3 2013 ones.

For the period that began on July 1 and ended on September 30, HTC's brought home $1.37 billion, crushing the pessimistic forecasts of the experts into pieces. It's unaudited net profit of $21 million are also way over than the predicted $7.1 million, which is nothing else but a good sign for the manufacturer behind the HTC One (M8). The reason for this fortunate comeback are the company's increased sales in August, which made it up for the stalling July ones. Unfortunately though, September brought yet another sales nosedive (7.9%) with itself.

As we already mentioned, the Q3 financial situation is a little worse than the previous quarter, but the improved year-over-year results are surely a good overall sign for the company - in Q3 2013, HTC earned $1.55 billion in revenue, but the $98.6 million loss gave the quarter a sour taste.

Undoubtedly, a new and compelling high-end device will only help the manufacturer get back in the black, and it looks like HTC might have several aces up its sleeve – the rumored HTC One (M8) Eye will allegedly fix one of the few weak spots of the One (M8), its underperforming Ultrapixel camera for a more regular 13MP snapper.

source: HTC via Reuters

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posted on 03 Oct 2014, 07:19 8

1. roldefol (Posts: 4097; Member since: 28 Jan 2011)


I still have a soft spot for HTC. They design classy phones, have great screens, and the twin-front-speaker look is all theirs now. I hope they stick around and make more good product decisions, because the phone landscape would be poorer without them.

posted on 03 Oct 2014, 07:30 8

2. tech2 (Posts: 3363; Member since: 26 Oct 2012)


Yup. Probably the only android manufacturer with great aesthetics in terms of OS skin and material choice in built of the phone.

But sadly they've stopped listening to customers. From sticking to the awful UltraPixel camera to non-replaceable battery. Their customer service is also not that good.

However, they've improved on updates and provided MicroSD slot this year. The shrinking marketing budget doesn't help either. Find it hard to believe that only couple of years ago it was the toughest competition Samsung faced in android landscape.

posted on 03 Oct 2014, 07:34

5. Captain_Doug (Posts: 990; Member since: 10 Feb 2012)


Same. Ever since the Incredible 2. That phone was adream to hold.

posted on 03 Oct 2014, 16:52

15. tedkord (Posts: 10302; Member since: 17 Jun 2009)


The last (and only Android) HTC phone I had was the Thunderbolt. It was built like a tank, still had a removable battery and expandable storage, and a great kickstand (I wish they would bring that back). But the battery was atrocious, and it really poisoned me to HTC.

I do love the front speakers, but the move away from removable batteries is a deal breaker for me. I also demand a microsd slot. I wish I could have a Note 4 with front spacing speakers.

posted on 03 Oct 2014, 07:34 1

3. Captain_Doug (Posts: 990; Member since: 10 Feb 2012)


Cool. Cool cool cool.

posted on 03 Oct 2014, 07:34 8

4. bendgate (unregistered)


Their biggest mistake was the 4 mp ultrafail camera. If it was 13 mp, there would have been twice or thrice more sales.

posted on 03 Oct 2014, 07:59 6

7. roldefol (Posts: 4097; Member since: 28 Jan 2011)


I don't know about biggest mistake. Not everyone cares that much about the camera. They wanted to make cameras not about megapixel numbers, but they went too far with it. If they at least had an 8 MP sensor, it would have looked more competitive with Apple, Samsung, LG, and even Moto on paper.

The 2013 One was more doomed by poor timing and competition than Ultrapixel.

posted on 03 Oct 2014, 07:42 2

6. blitzkreig (Posts: 103; Member since: 18 Aug 2014)


3 simple steps for more sales..

1.Lower price
2.Lower price
3.Lower price

With the proliferation of high quality/low price options in South & East Asia. its only a matter of time before other big name brands including Samsung & Sony realize that their current pricing strategy is untenable.

posted on 03 Oct 2014, 08:39 2

9. roldefol (Posts: 4097; Member since: 28 Jan 2011)


But low cost volume sales aren't what's made Samsung and Apple kings of the industry. In North America they price their phones and tablets to sell at high profit margin. And people are generally willing to pay more for what's seen as the best product.

I typically see the One and G2/G3 sell at $100 less than their competitors, even though they beat them in several areas. It's the nature of the industry.

posted on 03 Oct 2014, 10:58

12. JunitoNH (Posts: 1615; Member since: 15 Feb 2012)


Yes sir, more cookies for you. If they want to make it, certainly have to lower the price, especially for people buying off contract.

posted on 03 Oct 2014, 12:00

14. roldefol (Posts: 4097; Member since: 28 Jan 2011)


Keep up the great designs, equip them as well as or better than the competition, and undercut them on price. Then when you finally get everyone's attention, you can jack your prices up a bit for higher profits.

LG knows this. The G3 came better equipped than the S5 and was introduced with big carrier discounts. I certainly noticed.

posted on 03 Oct 2014, 08:36 1

8. NokiaFTW (Posts: 2071; Member since: 24 Oct 2012)


And some idiots said they would suffer after releasing a high end WP. Great going HTC. Looking forward to some more awesome WPs. And also, get that One M8 for Windows everywhere on this damn planet ASAP!

posted on 03 Oct 2014, 08:42 3

10. tech2 (Posts: 3363; Member since: 26 Oct 2012)


and some idiots still still think HTC went into profit because of WP without any having sales figure of M8 for WP.

posted on 03 Oct 2014, 09:42 2

11. gaara6775 (Posts: 738; Member since: 20 May 2014)


Desire 816 is selling like hotdogs here.

posted on 03 Oct 2014, 10:59

13. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)


Suck T C made a profit from cutting more corners than the normally do. If their high end phones cut so many corners I cant imagine how many corners were cut on the lower end phones.

posted on 03 Oct 2014, 18:00

16. GreekGeek (Posts: 1276; Member since: 22 Mar 2014)


The M8 could've easily been the Best phone throughout the third quarter had it not been for the crappy Ultrapixel

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