HTC

HTC's financial woes continue

HTC's financial woes continue
Taiwanese HTC released today unaudited results for Q2 2013, and while the results are an improvement over figures for Q1, they continue to indicate that the troubled company is a long way from financial recovery.

According to the statement, total revenue for the second quarter reached $2.4bn, a sizable increase from the $1.4bn in Q1. Of that, net income after tax came in at a meager $41.6m, an improvement over Q1's underwhelming $2.8m.

Regardless of its comparatively miniscule scale, this clearly is an improvement, right?. Not quite. When compared with on year numbers, the prospects of HTC are looking far less rosy, especially if you consider the seemingly small dent the manufacturer made with a solid offering in the form of the HTC One and the HTC Butterfly range. To put this into numbers, year-on-year revenue has dropped $600m, net income after tax has nearly evaporated from $297m down to the aforementioned $41.6m – that's an 83% drop!

With new devices already at the end of the production pipeline, we'd expect that HTC still hasn't completely lost the year. Unfortunately, analysts disagree:

"HTC may have new products in Q3, but competition from Apple and other Chinese brands are fierce," Taipei-based analyst Peter Liao commented. "It'll be hard to keep the growth."

Goldman Sachs analyst, Michael Shieh, also commented:
 
"The big drop on June sales likely proves the HTC One sales momentum slowdown and 3Q may be only flattish as is the market expectation."

source: Reuters

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48 Comments

1. wendygarett unregistered

Competition from Chinese brand are fierce? I thought HTC itself is also Chinese brand....

2. PapaSmurf

Posts: 10457; Member since: May 14, 2012

The very first word on the article Wendy...

8. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

You don't have to break wendy that hard. lol He is right though. Taiwanese.... is not Chinese.

14. neutralguy

Posts: 1152; Member since: Apr 30, 2012

Technically, wendy is right. Taiwanese are chinese. Get your facts right.

29. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

READ comment #28. lol

33. b1acktiger

Posts: 223; Member since: May 19, 2012

China are Taiwan are different countries and yes, Taiwan were a part of China before. Not now. like czechoslovakia. Now Czech Republic and Slovakia.

47. neutralguy

Posts: 1152; Member since: Apr 30, 2012

That's why I used the word technically.

35. oister85

Posts: 508; Member since: Apr 27, 2012

Yeah they use to be Chinese but they separate from china.

21. Cyberchum

Posts: 1037; Member since: Oct 24, 2012

Last I checked, Tan is Chinese.

22. Cyberchum

Posts: 1037; Member since: Oct 24, 2012

Last I checked, Taiwan is Chinese.

27. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

You are wrong!!! Technically Taiwan is part of China, just like Alaska is part of the US. Therefore, anything manufactured in Taiwan, is Chinese made.

26. SmartPhoneStream

Posts: 162; Member since: Jun 21, 2012

Taiwan is technically Chinese but not a China Company. Taiwan is officially the Republic of China, while China is the People's republic of China. Taiwan claims sovereignty over all of mainland PROC while the PROC claims Taiwan to be it's 23rd state. So it depends how you look at it if Taiwan is Chinese or China is Taiwanese.

28. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Thank you. Anyone in Taiwan will tell you they are not Chinese. I grew up with a Taiwanese kid & he always rep'ed Taiwan NOT China. Just like Puerto Rico & Guam are territories of the U.S. but are NOT considered the United States. That goes to neutralguy, Cyberhum & JunitoNH.

39. Taters

Posts: 6474; Member since: Jan 28, 2013

LOL Taiwanese are Chinese no matter how you spin it. People in Quebec do not want to be Canadians but too bad, they are. Same with the Taiwanese, they are Chinese even if they do not want to admit it. Just because I say I am not something doesn't mean that I am not. It could be just me talking s**t.

3. Slammer

Posts: 1515; Member since: Jun 03, 2010

I feel really bad for HTC. I loved its products and was a perpetual buyer of its phones. But, certain amenities are important to me as well as many other long time customers. It didn't listen to our requests to keep these certain criteria so many of us moved on. It now reaps the consequences of adopting Apple's arrogance in what ever deal it signed with Apple. Plain and Simple: rather than signing a pact with Apple, you should've been listening to your long time customers. John B.

20. Topcat488

Posts: 1415; Member since: Sep 29, 2012

Hey Slammer, you gave away the whole problem of HTC, in your second sentence. They need better timely updates of their smartphones... But they prefer that their customers are perpetual buyers of a new phone "updated".

44. rizevnarastek

Posts: 349; Member since: Sep 06, 2012

It's in people's nature to always want better and newer things. You'll buy the new product anyways since it has a better camera, better battery life, better screen and so forth . ;)

4. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Oh HTC... The once good phone manufacturer is slowly dying. They make incredible devices, and my first was the HTC Sensation 4G, but when they refuse to update their phones that are a year old, they got a bad rep and brought it against themselves.

23. lallolu

Posts: 732; Member since: Sep 18, 2012

I had the sensation as well and since they decided not to give it sense 4.1 not to talk of JellyBean, I gave the phone to my wife and bought a Samsung Galaxy S3 LTE.

5. Jason2k13

Posts: 1459; Member since: Mar 28, 2013

even HTC ONE is not helping HTC, i mean HTC's profit was better in 2012.

6. belovedson

Posts: 1060; Member since: Nov 30, 2010

Samsung swoop them up

37. SleepingOz unregistered

#NextBigFlop

7. sonisoe

Posts: 440; Member since: May 06, 2009

htc's miniscule marketing budget compared to samsung might be used as an excuse for the company's downtfall, but i dont buy that. htc has established a solild enough foothold for its brand since 3 years ago, in the us or internationally. they just hadnt listened to consumers/critics ie.android cripling sense and bad battery life despite generally beautiful hardware.

9. pyradark

Posts: 895; Member since: Jun 10, 2012

where the hell did the 5 Million sold? or should I say ship and stack at store

19. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

One of the exec of htc said that the 5 million units is not true, it only came from unknown person reporting to wsj. htc never made official declaration of htc one's sales.. but i remember 1.2Million in May doubling what April made.. so april 600k

10. HASHTAG unregistered

I wonder if they had better product support would they not be in this situation? I like HTC, but with them releasing so many flagship devices last year (given that they released many high-end devices last year) they were just in a complete mess.

11. FlushGordon unregistered

The Oversaturated Mediatek China phones are slowly killing the high-end market

12. LordLust187

Posts: 18; Member since: Jul 05, 2013

It's a great company but with devices losing support before or sometime around a year and lack of expandable memory or at the most 64gb of built-in memory their sales will continue to drop, They need better smartphone support if they want people to continue buying their pricy smartphones and I should know cause when I had a Android from HTC it was awesome and HTC said it'd get updated but now it's not even going to get any updates and that's why I won't buy a HTC One is cause if I get it know will they continue updating it or will it be another device HTC leaves behind?

13. applesauce

Posts: 165; Member since: Aug 26, 2012

It's unfortunate, but not unexpected. Folks now more or less thing of galaxies as android, just as Lumia is Windows Phone. HTC will have to be content with a much smaller piece of the android pie, and wrangle for position amongst Sony, LG, Motorola, ZTE, Oppo, Huawei, etc etc etc. Too crowded.

15. piyath

Posts: 2445; Member since: Mar 23, 2012

Trying is better than doing nothing.. Well done HTC.. I am a Samsung fan though.. Sammy is the King!

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