CYBER MONDAY 2020
Get the best Cyber Monday deals on mobile tech here!

The HTC Vive and the HTC 10 are selling well, but the company is still hemorrhaging money


HTC has just released its earnings report for the second quarter of 2016, and things don't look pretty for the once-iconic smartphone maker. HTC has reported an operating loss of NT$4.2 billion ($133M) for the second quarter of 2016 while revenue dropped nearly 44% from NT$33.0 billion ($1.07BN) in Q2 2015 to just NT$18.9 billion ($598M) in Q2 2016.

As one can easily notice looking at the revenue and profit charts above, this is just the latest in a series of unprofitable and revenue-slashing quarters for HTC.

Although Q2 2016 was obviously yet another bad quarter for HTC, the company points out that its most important products, the HTC 10 smartphone and the HTC Vive VR headset, are selling well. 

Unfortunately, HTC didn't provide any sales numbers for either the Vive or the 10. The earnings report only mentions that the company expects "sales momentum of the HTC 10 to continue into" the second of the year and that the Vive and the 10 were the main drivers behind the 27% greater revenue that HTC has earned compared to the previous quarter.

Once the most appreciated smartphone maker in the world, HTC currently finds itself in a precarious position. The new HTC 10 is the flagship smartphone that many fans have been expecting for a few years now, while the HTC Vive is turning heads in the VR gaming space. Unfortunately for the company's investors, however, the HTC 10 is fighting a tough uphill battle amid fierce competition from the likes of the iPhone 6s and the Galaxy S7 edge while the HTC Vive addresses a market segment that is probably years from maturing.

The HTC 10 and the HTC Vive are both critically-acclaimed and user favorited products, but it looks like they're just not enough to get HTC back in the black. According to unofficial reports, HTC CFO Chialin Chang previously aimed for HTC to turn a profit next quarter. However, unless HTC can pull a big, white, furry rabbit out of its hat in the upcoming months, it doesn't look like the prediction will turn out to be accurate.

source: HTC

FEATURED VIDEO

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.
FCC OKs Cingular's purchase of AT&T Wireless