UBS: HTC on track to announce another quarterly loss
UBS expects HTC to report sales of $34.9 billion NT ($1.15 billion) for the first quarter, which would represent an 18.6% drop sequentially and an 18.4% decline year-over-year. Analysts were expecting HTC to report revenue of $54.6 billion NT ($1.8 billion USD). In addition, UBS' analysis has HTC losing money on every dollar of sales that comes into its coffers. The brokerage house forecasts a -3.5% profit margin for the period, a slight improvement from the -3.6% reported the fourth quarter of 2013, but down sharply from the .1% profit margin achieved in last year's first three months.
Overall, UBS predicts that HTC will report a net loss of $916 million NT ($30.2 million USD) for the quarter. In the prior quarter, HTC reported profits of $310 million NT ($10.2 million USD). A year ago, HTC reported an $85 million NT ($2.8 million USD) profit. UBS analyst Arthur Hsieh, chief electronics hardware analyst, says that without another source of income or a drastic cut in expenses, HTC will not meet expectations of a $412 million NT ($13.6 million USD) profit.
HTC is currently putting the finishing touches on the sequel to its HTC One Android flagship model. Code named the HTC M8 and dubbed the HTC One 2 by us media folk, the eagerly awaited high-end model could launch as soon as next month. UBS' Hsieh doesn't believe that one model can make a difference, so he doesn't expect HTC to be in the black until 2015. HTC had never reported a quarterly loss until last year's third quarter when it reported an operating loss of $101.3 million USD.
Thanks, Anonymous Tipster!
2. NokiaFTW (Posts: 2058; Member since: 24 Oct 2012)
The HTC One is a great looking phone, God knows why it didn't sell well.
4. Aploine (Posts: 235; Member since: 24 Oct 2013)
4mp camera: I want to zooooooom
Production problems leaded to late availability
5. amro99 (Posts: 80; Member since: 29 Nov 2012)
I agree that the camera didn't perform as promised, but it can never be the reason for the One being crushed by s4 in sales volume. It all goes to customer awareness and brand recognition. Even lg's G2 sales were disappointing while it was way better than S4 in almost every category. Why? because Samsung is the first brand that comes to those people's mind who don't want to go for iPhone
8. taz89 (Posts: 2014; Member since: 03 May 2011)
Yep brand awareness and trust ie people probably Trust the Samsung name because they are making everything. The problem with HTC they never solidified a brand name, it started off with the desire, there was evo, sensation, one x, one line etc etc. So when someone thinks of HTC not one comes to mind as they have changed countless time where as everyone complaints about Samsung calling everything a galaxy but that's there brand, you say galaxy and one thinks of Samsung and vice versa.. Samsung built that awareness over time. I think HTC should have stuck with desire name, they were doing well then but since then they never had one consistent name add to that fact that they pretty much forget there devices quite quick it's no surprise..building brand awareness takes years to do and the question is do HTC have years in them. They also need to go all in with there phones and something that's easy to sell to there customers, ultra pixel great idea but never fulfilled it's promise and even if the 4 ultrapixel was the best camera ever it would be very hard to get the average consumers to buy into it.
10. neops (Posts: 216; Member since: 28 Jan 2014)
I couldn't agree more about brand recognition.
Those three phones imho
HTC One: Camera (4 mpx against 13, 20 and 40 if you consider other phones besides S4), availability, no updated more powerful editions (still 1.7 Ghz), user interface with tiles that doesn't work for many people. Smaller proportions of screen to real estate. Updates. It's a beauty but I 'd like more aesthetically unified front (I dont mean the UI) but that's just me. I can't think anything else right now.
G2's camera isn't better than S4's. I 've tested them my self. I saw overexposed brights and indistinct dark areas. S4's was more balanced.
Add no sd card, no removable battery (ok it has a big one but for a heavy user all day away?), heavier (ok only 13 gr), bigger (ok bigger screen) squeaky plastics, not so refined shell design. Back keys for some people(?). Updates.
I was close to go bigger screen and overcome any of the rest, except camera quality, sd card, removable battery.
I'd rather carry an extra battery all day, remove the empty and put the full, than to carry charger and cable.
Add bad advertizing like "Don't only touch the front, touch the back also" (something like that, that can be sexistic or silly for some people).
S4 sell some air also with air gestures, thermometer, barometer etc.
Galaxy is a dreamy name with long history, future too.
Samsung has a better reputation about updates, though LG and HTC try hard lately.
All these IMHO as i said.
11. Taters (Posts: 3660; Member since: 28 Jan 2013)
Major build quality issues and sometimes it just didn't work
3. papss (unregistered)
I hate to see this honestly. I remember the eco and how awesome it was.. Then they did that turd phone that had 3d
7. EclipseGSX (Posts: 1673; Member since: 18 Oct 2011)
It is sad, I loved all my EVO's. (Yes even the 3D) I think they lost focus with the Desire series. They just don't have the sales or resources to have a successful line with several different variations
6. Esteban4u (Posts: 39; Member since: 15 Oct 2013)
Big surprise...not. Blame the gimmicky non-Sense Android customization on this device.
9. XperiaOptimusOne (unregistered)
Just price your phones right and you'll gain profits in no time.
12. Taters (Posts: 3660; Member since: 28 Jan 2013)
Well deserved losses. They still haven't learned that they need to place a higher emphasis on quality control and ergonomics rather than materials and looks.