HTC's Q4 forecast shows that the company is still bleeding money

HTC's Q4 forecast shows that the company is still bleeding money
The story of HTC is really beginning to scare us a bit, due to the parallels our minds instinctively draw. A company of zero repute in the distant 1997, HTC became one of the biggest (contract) manufacturers in the world, but today, it's on its way to a post a second consecutive disappointing showing in Q4. In its 16 year history, HTC has only ever posted a loss once before.

These news come directly from HTC's financial forecasts for Q4. According to the Taiwanese maker, their revenue is projected to be between $1.4 and $1.5 billion. That's below analysts' estimated average of about $1.8 billion, a number compiled by Bloomberg. It would, therefore, appear that HTC's efforts in cutting expenses, enlisting some marketing help, along with the latest entries to its portfolio are unable to drive demand for the company's wares. HTC's sale of its 25% (about $860 million, pre-tax) share in Beats Electronics, also appears incapable of stemming the tide of losses the company is making. Multiple sources have already reported that the Taiwanese manufacturer is working on a new portfolio of lower-end devices for the Chinese market that it hopes will rejuvenate its finances, but these are probably still a few months off.

HTC's stock declined sharply (as much as 7%) in the hours before the outlook was even announced, representing its biggest drop since October 2012.

This puts HTC in a real tough position, and the company's predicament sure reminds us of other recent stories, that read in much the same way. Nevertheless, we haven't given up on HTC just yet, and we sure hope that HTC hasn't given up on us, either.

Source: Bloomberg

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10 Comments

1. roldefol

Posts: 4744; Member since: Jan 28, 2011

I could not recommend HTC to someone inquiring about iPhone replacements, even with the One's premium materials and sound quality. It's hard to push a company that's clearly in trouble. They need a saviour, and quick. Lenovo? ASUS?

4. 14545

Posts: 1835; Member since: Nov 22, 2011

Dear god no, Asus has worse QC than anyone. And if you have ever dealt with their warranty program you would never want to deal with the company again. That being said, it's sad. I really like the ideas they have, and they make decent products. Just pray they don't break.

7. Taters

Posts: 6474; Member since: Jan 28, 2013

Seems like a Taiwanese thing, their QC is horrible for both Suck T C and Asus. Acer was the worst but surprisingly they seem to be the only Taiwanese company going in the right direction as far as quality is concerned now.

8. Mittal

Posts: 494; Member since: Dec 14, 2011

They need to realize the importance of competitive offerings in low-mid range Their currents mid range devices are ridiculously overpriced for what they offer Kindly change yourself HTC....

10. Finalflash

Posts: 4062; Member since: Jul 23, 2013

They need to differentiate themselves more. There is a massive android following for AOSP and just pure vanilla that no one but Google is targeting with their limited nexus offerings. HTC could easily target that market and make mad money but they would rather compete with juggernauts like LG and Samsung. Apple makes an insane amount of money on a small share of the market. Copy that model a bit and target a segment of the market that the opponent isn't targeting with a range of devices that are good.

2. mturby unregistered

just like the ''wii u''.maybe its the ''brand''. cant they have a more friendly name? htc...sounds kinda annoying or weird to say.

3. roldefol

Posts: 4744; Member since: Jan 28, 2011

They have some name recognition, but it's more related to their being the first to sell Android phones. Once Samsung took over with the Galaxy S series though, HTC was no longer synonymous with Android. So while LG, Sony, and Samsung are recognized leaders across electronics, and Nokia and Motorola have decades of history selling phones, HTC is kind of a non-entity. That's why they might be better off under the ownership of an established tech giant like Lenovo or Asus, two companies that have yet to get a toehold in phones, at least in the west.

5. mottykels

Posts: 387; Member since: May 15, 2013

They are so over pricing with thier phone thats why they are lossing all

6. Taters

Posts: 6474; Member since: Jan 28, 2013

They are trying to cut more costs? Your quality control is what landed you in this mess in the first place. Last thing you need to do is cut even more corners......

9. 14545

Posts: 1835; Member since: Nov 22, 2011

Not just cutting corners, but doing so while not listening to what we as the consumer want. We asked for better batteries(removable or not) and SD cards. We get neither. That's why I refused to buy the One when I upgraded. I bought the S4. Not to mention, why are they still lagging on updates. Sure the one got an update, but they still refused to support their older hardware. (DNA, Rezound, etc.). Screw them. That's why my rezound is now just a dash cam.

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