HTC's financial crisis deepens with a fifth straight quarterly loss reported in Q2 2019

HTC's financial crisis deepens with a fifth straight quarterly loss reported in Q2 2019
HTC may have ended the year's second quarter on an unusually high note, but the 94 percent June revenue increase compared to the previous month was not enough to stop the bleeding. After crunching the numbers, the Taiwan-based company has just released its official Q2 2019 financial report, with net losses reaching NT$2.23 billion ($70 million), up from NT$2.09 billion during the same period last year. 

On the bright side, the faltering tech giant did lose slightly less money between April and June 2019 than the first three months of the year, despite generating a lower revenue of NT$2.81 billion (compared to NT$2.94 billion). Interestingly, while HTC's losses grew slightly year-on-year, its overall revenue score practically fell off a cliff, from NT$6.8 billion back in Q2 2018.

That means the company's gross margin is up from 2.7 percent and 14.7 percent in Q2 2018 and Q1 2019 respectively to 20.3 percent, marking the sixth consecutive quarterly improvement. Unfortunately, the April - June 2019 timeframe was also the fifth consecutive quarter of heavy net losses for this Android pioneer, which is showing little to no sign of a recovery.

Last week, the company posted a paltry NT$0.44 billion ($14 million) in July revenue, down sharply from NT$1.46 billion in June and NT$1.4 billion last July. It's hard to believe HTC will be able to generate the tiniest profit anytime soon, although the revival of the once-popular Wildfire brand could be the beginning of a Nokia-style comeback

For its part, the company is not touting any ambitious objectives in its latest financial summary, merely highlighting a "continued commitment" to the important mobile segment with the recently released U19e and Desire 19+ mid-range smartphones. 

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6 Comments

1. ijuanp03

Posts: 630; Member since: Dec 30, 2014

As a current HTC U12+ user and have been a long-time HTC fan since the very beautiful and the best smartphone in its time, the HTC One M7, HTC should throw in the towel. Nothing can save this OEM from being so stubborn and not even listening to the very small fanbase they have right now. We have been defending HTC for a very long time now but it's tiring already.

2. Arthurhkt

Posts: 727; Member since: Apr 19, 2012

Even they start to “listen” by lowering the price to be competitive or increase the functionality, it is still too late for them, the market had been so saturated and there’s no reason why people should just buy from them, people have more choices now.

3. TBomb

Posts: 1632; Member since: Dec 28, 2012

Just like Motorola found it's place, HTC will find theirs. i personally think that HTC should try the modular route like LG and Motorola. yes, it failed for them but that's because I think it was more strategy/execution than the products themselves. Or maybe have it be a built to order style. "choose your processor/camera/shell" that may skyrocket prices though....

5. ijuanp03

Posts: 630; Member since: Dec 30, 2014

I somewhat agree. But then again, Motorola DID listen. They use stock Android UI to their advantage. They only have one additional app (Moto App) with all the nifty features. They use premium materials even with their midrange devices like the G7 and especially Moto X4. All these sacrifices turned into real profit and they are even the top 2 smartphone brand in Latin Americas. HTC can start by removing all their bloatware including Sense UI. Software update is bad starting from the U11. Sad but they should go back to the drawing board and reinvent themselves.

6. CEDEOTB

Posts: 452; Member since: Nov 21, 2016

I liked Sense Ui....

4. oldskool50 unregistered

They really should just give it up. Either work out some cross-licensing deal with aomeone other than Apple, or just sell yourself to the highest bidder. Because at this rate, you gonna go out of business. This is sad, because I had a few HTC phones in the Windows Mobile and early Android days and they were great. The HTC TouchPro 2, the HTC Incredible and Incredible 2 were awesome devices in there day.

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