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

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12 Comments

1. kiko007

Posts: 7493; Member since: Feb 17, 2016

A real shame.

2. biophone

Posts: 1994; Member since: Jun 15, 2011

Such a good phone if only it was marketed like the s7.

5. Finalflash

Posts: 4063; Member since: Jul 23, 2013

If your product is good, people will buy it. Marketing only adds to the success. Unfortunately, Samsung just make a better product this time and there is literally no comparison. I can't even think of one thing the HTC 10 does better. Camera-S7, screen-S7, design-S7, chips-S7 (mostly), features-even or S7, software-debatable (exynos is pretty good, snapdragon not so much), support-debatable(HTC for software longevity and Samsung for customer support) I'm guessing.

8. talha_16

Posts: 62; Member since: Oct 12, 2015

You are really wrong. This clearly doesn,t explain why apple sells so much more than any other smartphone even though most of their products peroformance and specs are way behind Samsung or HTC. Selling more is all about marketing. For example. Note 7 is just a galaxy S7 edge with an s-pen but still it will sell like hot cakes because Samsung has the money to advertise it and letting people know that it is something new. Yes Samsung makes good phones but if they didn't have the advertisement factor they wouldn't be selling this much

9. biophone

Posts: 1994; Member since: Jun 15, 2011

Disagree I can't think anything the s7 does better than the 10. All about the marketing

10. maddashell

Posts: 8; Member since: Aug 07, 2012

Its apparent you don't like HTC, and HTC is a better phone than the S7. and if you know anything about marketing, it's good to have it. And HTC has very little to no marketing, and still sells well. Unlike Samsung, who markets the hell out of everything Samsung.

12. Rahatspecial unregistered

my brother has a note 5, it's too slow compared to my HTC 10

3. uzimafioso

Posts: 469; Member since: Jul 15, 2014

As of now, HTC 10 has become even more desirable. Most flagship purchasers I know were holding out for the Note7 in hopes of 6GB RAM and SD821/Ex8893. Now that they know that's not coming, grumbles of 'might as well get the HTC' are on the rise.

4. dcwt2010

Posts: 74; Member since: Feb 01, 2013

I don't mean to be funny but as a tech savvy person amongst an ocean of non tech people I find it very unlikely that a load of people care whether the Note 7 had the SD820 or 821...even the 6GB RAM will seem a bit pointless (and it is for the most part). Bottomline is the average high end consumer hasn't got a clue or don't care about the actual specs so they won't suddenly make a beeline for the HTC 10 because the Note 7 doesn't have those above mentioned specs.

7. uzimafioso

Posts: 469; Member since: Jul 15, 2014

I don't think you get my point. Tech savvy people are going to opt for more HTC 10. May not be in tens of millions but with a timely price-cut HTC can bank on it to sell its one million target, may be a few hundred thou more. Hence breaking even with the losses. If you think there aren't a million people who would purchase a HTC 10 over the Note7 you are wrong. Tens of millions might still opt for the Samsung trio of identical flagships.

11. dcwt2010

Posts: 74; Member since: Feb 01, 2013

I would be happy to be proven wrong but fact is that the people who go high end items like Note series are barely looking at HTC these days.

6. sumpil

Posts: 91; Member since: Feb 02, 2016

They need to cut back on the number of devices they produce

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