HTC continues to spill red ink for a third subsequent quarter, loses $62 million in Q1 2014

HTC continues to spill red ink for a third subsequent quarter, loses $62 million in Q1 2014
Taiwanese manufacturer HTC released its financial report for Q1 2014 and it appears that it has not balanced the books yet. The company continues to lose money for a third subsequent quarter, as it has lost roughly $62 million (NT$1.88 billion) from January 1 to March 31, just as it was predicted roughly two months ago.

HTC's revenue for the period has also fallen to about $1.1 billion (NT$33.12 billion) in Q1 2014, which is a 22.6% drop in comparison with the $1.42 billion (NT$42.9 billion) that HTC earned in the previous quarter. Additionally, HTC's operating loss for Q1 2014 was $68 million (NT$2.05 billion), which means that it's losing roughly $0.076 per single share. Just before HTC announced these financial results, its shares had climbed 3.6% up, which is the highest result for several months.

The sales of the HTC One (M8), the company's flagship smartphone for 2014, were off to a slow start despite the massive hype around the device. As we reported the other day, the One (M8) purportedly accounted for 1% of HTC's mobile web traffic in the USA during the first week after it got launched.

Hopefully, the One (M8) will get HTC back on its feet and return some profit during the upcoming quarters of 2014.

source: HTC via Reuters

Related phones

One (M8)
  • Display 5.0 inches
    1920 x 1080 pixels
  • Camera 4 MP (Dual camera)
    5 MP front
  • Hardware Qualcomm Snapdragon 801, 2GB RAM
  • Storage 32GB, microSDXC
  • Battery 2600 mAh
  • OS Android 6.0 Marshmallow
    HTC Sense UI



38. julz17ronald

Posts: 52; Member since: Apr 26, 2013

What to expect if you price the device too high? Samsung might not have that killer look for their devices but pricing it right and good marketing outsells HTC. In my country local brands are more popular than HTC.

36. Taters

Posts: 6474; Member since: Jan 28, 2013

Just got the HTC One I am supposed to promote. What do you know. A stuck pixel that thankfully woke up. And a rattling volume rocker just like on the HTC One X and HTC 8x I had before. Typical HTC. Lol And they wonder why they fail. They never ever learn.....

37. papss unregistered

That sucks lol.. glad mine has been perfect this far. Hate the flush power button and hate that I have to clean it so often.. more than that I've come to realize that I just don't like android all that much

35. techloverNYC

Posts: 601; Member since: Nov 20, 2012

This is what happens when a company goes cheap on marketing and advertisement. not to mention the times, they do market it fails horribly.....

31. Denco

Posts: 118; Member since: Mar 25, 2014

Are people so dumb that they don't appreciate 'the most stunning, beautiful, gorgeous, all-metal' build and design' quality? Or are we sure they can be easily bought by only the marketing of the so-called 'ugly plastic'? The truth is, if a product is not connecting to the desires and needs of consumers, no amount of marketing or advertising can deceive them. Even if you succeed in deceiving people some time, you can't deceive them all the time.

32. Promethius26

Posts: 8; Member since: Dec 03, 2013

Apple would like to politely disagree.

28. zachattack

Posts: 621; Member since: Jul 31, 2013

It's not their fault the smartphone crowd is saturated with ignorant people who don't know a thing about smartphones and rely on other ignorant people to tell them what's good. The HTC m8 is undoubtedly one of the best of 2014 and I don't think people can get it through their thick skull that megapixel count doesn't matter. Samsung's ugly ass plastic flagship has a 16 megapixel camera that doesn't have optical image stabilization just like the m8. Their pictures will look quite similar, except Samsung's pictures are too big for anything and have to be scaled down. Not HTC's, 4 very clear and strong megapixels don't need down sizing. Smartphones aren't professional photography tools stop treating them as such and get over the fact that the m8 didn't have a huge megapixel count. It's a dead horse that you people just don't tire of beating

29. Slammer

Posts: 1515; Member since: Jun 03, 2010

While marketing does have impact on consumer purchasing, many consumers like to have a certain control quotient in the products they buy. I am less concerned about the megapixel count of the camera than I am the accessibility to expandable memory and removable batteries. With carriers charging for cloud storage and needless services for battery replacements, I find that doing these things myself, is far cheaper and more time efficient. I don't feel I fall into the ignorance category. My experience of using cellphones for 27 years, paves way to know what I like and need. The industry is trying to placate its financial bottom line over consumer control. Many arguments claim that if they are going to spend 600 dollars on a device, it should be "premium". I say if I'm going to spend 600 dollars on a device, I should maintain more control; not less. My first phone cost me 1500 dollars in '86. No one ever complained of removable batteries or hardware made of plastic. It was what it was. Consumer control should be the utmost importance when supporting the cash flow that is delivered by the public to manufacturers. My stance is for expandable memory and removable batteries. While HTC's direction for Ultrapixels doesn't affect me, many looking at phones do look at pixel count when purchasing. This coupled to eliminating removable batteries, will effect those that seek the contrary. Those that stirred away from Apple for the same reason. Your agitation in your post may present a valid point for camera offerings, but much more is considered when dealing with everyday usages. Many engineers suggest removing batteries and checking them every 4 months for swelling and degradation of the anodes and cathodes within the battery. How does one check this if embedded? Swelling can damage the components secured in close proximity of the battery. E.G. PC board could crack from the pressure exerted by the swelling of the battery. HTC has lost my business due to eliminating the two important aspects that others as myself consider highly relevant to maintaining normal daily exercises. John B.

26. Slammer

Posts: 1515; Member since: Jun 03, 2010

Well, Just finished a phone call with Barry at HTC. Informed him that if and when HTC can keep their current hardware design but reinstate removable batteries, that many people like myself will return to HTC. He was very receptive and understanding. So I'm not sure what tech sites such as phonearena and others are doing to help promote the very important features of consumer control on certain accessible parts. But, my conversation with Barry seemed "encouraging". We, as tech enthusiasts, need to put the pressure on these manufacturers that diversity and consumer balance is more important than them trying to force us what is goog and what isn't. I also called Samsung and commended their stance in retaining the accessibility of important components such as SD cards and removable batteries. Samsumg was equally receptive and very proud that customers acknowledge one of the many reasons they are sought after. John B.

25. KillerKeyboard

Posts: 372; Member since: Nov 21, 2013

Hate That Camera Help This Company

24. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

When you don't listen to your customers, things can get pretty nasty, Ask Microsoft... Two major catastrophic blunders that this company has made so far... 1. It took them awhile before *they realized* MicroSD slot is an important, deal-breaker of a feature 2. And now, rumor has it that they are FINALLY ditching the Ultrapixel in their next upgrade cycle. And I thought reacting late was Microsoft's expertise lmao, boy was I wrong! It turned out HTC was BETTER :-D Design alone won't win you many customers HTC

21. Slammer

Posts: 1515; Member since: Jun 03, 2010

Beauty is only skin deep. HTC lost me with the 4G LTE. Any company that tells me I don't need removable batteries, will lose my business or not get it at all. I'm done playing games. These companies stand to make billions off consumers forced to bring their devices in for battery issues. Many of my friends that have taken the plunge on newer handset designs with embedded batteries, have grown tired of the BS. Three of my constituents had to pay close to $200 just to have their handset replaced due to battery problems. There was nothing else wrong with their handsets other than that. Many have decided to move to Samsung for high end specs and component accessibility. John B.

20. Liveitup

Posts: 1798; Member since: Jan 07, 2014

But it uses Android OS overwhelmingly.

19. CX3NT3_713

Posts: 2365; Member since: Apr 18, 2011

Microsoft should buy this company as well....

23. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

here comes a wp fanboy. lol.

18. SAO101789

Posts: 123; Member since: Feb 10, 2014

Phones 8mp and up will always sell better. Htc may have best design but it's not worth it from the specs in my opinion not hating

16. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

In stores near me OG htc one costs more than galaxy s4 and equal to lg g2.

14. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

If you look in 2010-2011 brand value of htc was somewhere near oppo and huawei minus marketshare.

13. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Keep the prices low and do marketing properly.

12. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

They should've stopped developing their lousy camera tech after the HTC ONE. And they need to hang or shoot themselves for the ultra-flop ultra-horrible HTC ONE MAX (Plus who could forget their Facebook phone).....Now it's too little too late Only a miracle could save them, how about lowering the price tags first? A slimmest chance of recovering is still a chance lol RIP

17. Taters

Posts: 6474; Member since: Jan 28, 2013

They can't lower the price. They already signed the Apple and Nokia's extortion fee's contract. Samsung and Ericcsson should sue them too and just take their remaining profits or lack of profits. It would be hilarious. Lol

27. nokia12

Posts: 610; Member since: Nov 19, 2013

hahaha +1

11. Killua

Posts: 270; Member since: Nov 25, 2013

Like it or not Brand Awareness is important factor in selling a product. HTC design might looks good, but in terms of brand name it's losing to Samsung & Sony. And honestly, M8 is pretty disappointing, not much difference than M7. They should spent more time into their software, not design only.

10. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Whhhhyyyyyy Ohhh Whyyyyyyyyy HTC do you keep on shoving your ultra lame ULTRAPIXEL technology down people's throats?! n-o-b-o-d-y wants it............. And you wonder why sales figures has been so abyssmally poor? Listen to your customers for eff's sakes...geez...for once...listen to them!

9. NotAGeek

Posts: 279; Member since: Jan 26, 2014

This is the reason why HTC should stop mocking samsung

6. vuyonc

Posts: 1094; Member since: Feb 24, 2014

Lemme guess. All that money went to those terrible Gary Oldman ads.

4. Jason2k13

Posts: 1490; Member since: Mar 28, 2013

but I thought the public prefers premium, well designed phones only? and not ugly Samsung design?

7. MarkArigayo

Posts: 240; Member since: Dec 18, 2013

I was a Sammy diehard and they can survive and lead the market thanks to massive campaign and advertisements. HTC troubled itself with unclear marketing strategy. They should decrease their price-tag at least 30% to increase their market shares.

8. Jason2k13

Posts: 1490; Member since: Mar 28, 2013

go market a pig as the best pet to have and see how far you will go. There are many factors to selling a product, and marketing is just one of them. HTC phones are expensive, 4mp camera was such a bad move when the public prefers bigger numbers like S5 16mp. Like the HTC M7, it was a big phone for it's screen size, and now the M8 is even bigger. I just hope HTC still lives on, because I like options.

15. Taters

Posts: 6474; Member since: Jan 28, 2013

All these marketing geniuses are hilarious. Marketing can be a powerful tool but it is just a tool or a process. The first part of this process usually begins like this. You look at a product and you analyze it. If it's not marketable, you just don't spend money on it and it doesn't pass the drawing room board. Samsung products are marketable and HTC products are not. That is the more realistic way of looking at it. Whether that speaks to quality or not is up to you. I say it does speak for quality at least indirectly. HTC and Sony fans just need to suck it up and stop blaming marketing for their companies failures. People usually know what they want and it isn't a suck T C product.

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