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HTC forecasts that its sales and revenue will continue to plummet during Q3 2014

HTC forecasts that its sales and revenue will continue to plummet during Q3 2014
The hard times for HTC might continue for yet another quarter – the troubled manufacturer, which is lately spilling red ink from each of its financial reports, forecast that it will continue to experience diminishing smartphone sales in Q3 2014. One of the reasons behind this alarming prediction is the upcoming arms race that the likes of Apple and Samsung will engage in this September. The Apple iPhone 6, the rumored Samsung Galaxy Alpha (a.k.a. Galaxy S5 Prime) and the Galaxy Note 4 will surely eat even more of HTC's market share.

The HTC One (M8) flagship, which is the top performer in terms of sales, will continue to bring less profits home, as it has already surpassed the pinnacle of its product life, claimed HTC CFO Chialin Chang, who is to focus on the company's sales. Thus, HTC will have to “trim sales and marketing expenses” if it wants to weather the Q3 storm. The company will be re-evaluating its market strategies, but unlike other manufacturers (we are looking at you, Microsoft) HTC won't be decreasing its human workforce.

"Some of our products, after the initial excitement, have settled at a lower level. But the good thing is it is stabilized," Chialin Chang claimed. "For HTC, to start gaining market share is important. We have gone through a transition period in 2013."

Jeff Pu, an analyst with Yuanta, claimed that HTC might grow up to be “a niche, high-end player”. However, this will be extremely hard for the company, as the market is getting more crowded and fierce. "Actually no one has this kind of position right now", claimed Pu.

HTC is also experiencing a serious upheaval at its top, where a number of high-end executives have either expressed their intention to leave the corporation or to take up another position within the company. Well, we can only hope that HTC will get back on track as soon as possible.

source: The Wall Street Journal

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posted on 31 Jul 2014, 05:37 1

1. sun0066 (Posts: 175; Member since: 12 Feb 2011)

Very smart from htc since htc phone are so horrible with so horrible camera it seems as te camera of my treos many years ago , so well deserve it

posted on 31 Jul 2014, 06:37

5. Finalflash (Posts: 3528; Member since: 23 Jul 2013)

Yea, they aren't going to get far in the Android space with gimmicks. They need to match the top end phones minimum to get some steam back. They also need to fix their corporate bureaucracy otherwise it will be the end of them.

posted on 31 Jul 2014, 05:39

2. lallolu (Posts: 560; Member since: 18 Sep 2012)

HTC should learn from LG.

posted on 31 Jul 2014, 05:40

3. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)

Wow HTC M8.

posted on 31 Jul 2014, 05:50 1

4. DavvyGhotra (Posts: 13; Member since: 24 Jul 2014)

its all fault of advertisement, htc have better product than others but this era is of advertisement people go with the thing they see most . so htc should do something with this. #htcfansinse2004

posted on 31 Jul 2014, 07:05

6. NokiaFTW (Posts: 2072; Member since: 24 Oct 2012)

So HTC's sales are plummeting, Samsung's sales are declining, and Sony's smartphone division just posted a loss. LG is the only major Android manufacturer that has posted an increase in sales this quarter. And Xiaomi and Huawei are the others who have increased revenue and sales with Android, along with local Chinese and Indian brands, who sell phones at super cheap prices. And then some fandroids say that WP is surviving only on low end phone sales. Perhaps they've forgotten why their favorite OS is number one right now.

posted on 31 Jul 2014, 07:41

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

Nokia WP is not fluctuating.

It's still losing revenue .

The whole division is making total lost and Ms is injecting resources from their own to keep Wp afloat, or else it would've been in Rip.

posted on 31 Jul 2014, 10:01 1

9. Dubs816 (Posts: 28; Member since: 02 Jun 2014)

LG lost market share this quarter too. They're in the same boat as everyone else. The Chinese manufacturers are taking away bigger pieces of the pie.

posted on 31 Jul 2014, 08:01

8. toyboyz (Posts: 207; Member since: 22 Jan 2010)

Should have came out with that "Prime" phone that was rumored. What a shame..:/

posted on 31 Jul 2014, 12:02

10. WahyuWisnu (Posts: 1001; Member since: 29 May 2014)

I think HTC need to give pink slip to their WHOLE camera department.

posted on 31 Jul 2014, 13:31

11. galanoth (Posts: 426; Member since: 26 Nov 2011)

It's hard to compete with the Chinese low cost phones when you need to make money on hardware.
Everyone is learning that.

posted on 01 Aug 2014, 01:36 1

12. jdrch (Posts: 104; Member since: 08 Jul 2014)

That's ironic. Thought the all-metal, "best Android phone on the market" M8 that ever reviewer can't stop raving about would have been a runaway success. No? Hmmm maybe the reviewers missed something.

posted on 01 Aug 2014, 03:40

13. sniperdroid (Posts: 146; Member since: 23 May 2013)

Same way everyone was talking about the iPhone dying off only to find them still making millions. The M8 might be a good phone but it's not what HTC need to compete right now.

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