HTC posts revenue decline for April as its U phones failed to catch on
HTC hasn't shared its financial results for the first quarter, but it published its revenue for April and things aren't looking up. The company sees a 9% decrease in revenue, with a 6% drop in total revenue year-over-year. This is an indicator that sales of HTC's newest smartphones, the U Ultra and the U Play, came lower than expected.
Indeed, the devices failed to excite customers and reviewers, leaving both to expect a more memorable and intriguing product. The company has a big launch this month, unveiling the supposedly named HTC U 11 smartphone on May 16. As far as we know, its 'killer feature' is letting you gently squeeze the sides or glide your fingers onto them to select and launch apps. Hopefully, it won't turn out as gimmicky as it sounds.
In the meantime, HTC hopes to reduce its losses by selling a second smartphone factory, the one it has in Shanghai. However, the financial injection from the sale is going into its VR business – a more promising niche than the saturated and difficult smartphone market.