HTC's Q3 financial results are in: weak revenue and big losses

HTC's Q3 financial results are in: weak revenue and big losses
The HTC U12+

After releasing its revenue report for the month of October last week, today HTC has published its financial report for the third quarter of 2018 and, despite efforts to reduce costs, the company experienced yet another loss.

For the period ending September 30, HTC saw total revenues of just $130.8 million, a figure which represents a drop of almost $400 million versus the previous year. However, it's worth noting that the Taiwan-based company’s efforts to reduce operating costs were very noticeable, going from a whopping $453 million a year ago to just $123 million during the latest quarter. Rather unfortunately, though, HTC still posted a pretty big loss of $84 million for the three-month period. For reference, the company lost $68.3 million in Q2.

Despite these negative numbers, HTC says it continued to see “major developments” across its virtual reality business thanks to the company’s investments in both its hardware and software platforms. With the brand still reporting losses each quarter, though, it’s unclear how major these developments actually are.

The company does also appear focused on its smartphone business and noted the launch of its recent Exodus 1 blockchain phone. Considering the limited interest in this kind of device, though, it’ll remain to be seen if it positively impact HTC’s financial status in the near future.

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6 Comments

1. perry1234

Posts: 654; Member since: Aug 14, 2012

For some reason , this does not even come as a surprise to me. Bad pricing, bad marketing, running away from tough competition, reports of bad customer experience in general...the list can go on for a while. I am surprised when they make a profit though....but then find out it was because of not something they achieved, but some deal they signed. Last time it was when they sold their engineering division to Google for a billion dollars. HTC Sense used to be my favorite Android UI overlay... I am sad that things are how they are... but their tech division was awesome. HTC One M7 / One M8 were a thing of beauty and powerful sound. It slowly went downhill from there onward.

2. joshuaswingle

Posts: 656; Member since: Apr 03, 2018

I personally think it all went completely wrong for them with the One M9. It seems as though they got a bit cocky once they saw the One M8's reception (Positive reviews and higher sales versus the M7) and put almost no effort into the M9's design as they assumed it would sell again. Essentially HTC thought it could do what Samsung and Apple achieve, but without huge marketing campaigns.

6. perry1234

Posts: 654; Member since: Aug 14, 2012

Yes true, a very rookie mistake...something that you would not expect of HTC's stature to commit...ah , well. Maybe they will bounce back...some changes here and there, a hard look at revenue improvement instead of profit per device...and they can possibly still sustain themselves.

3. CEDEOTB

Posts: 459; Member since: Nov 21, 2016

Incoming "I told you so HTC" comments

4. STRANG3R

Posts: 234; Member since: Sep 24, 2015

They deserve it.

5. Arthurhkt

Posts: 727; Member since: Apr 19, 2012

Biggest issues with HTC? Pricing, mediocre design, lack of marketing, taken away the functionality that love by their core audience (Example :- Headphone jack), and most of all, uninspiring UI/UX. Sense wasn't truly a stock yet it wasn't feature-pack as other forks/skins, update was only slightly faster than other heavy skin yet still slower than stock, as if they had lost identity. HTC has no one to blame except themselves.

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