HTC today announced financial results for its second quarter. It recorded revenues of NT$70.7 billion (about US$2.36 billion) and net profits of NT$1.25 billion (about $40 million). While profits rose over the previous quarter, they are also down 83% over the same quarter a year ago.
“My leadership team continues to focus on execution,” said Peter Chou, CEO of HTC. “We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H.”
Whatever success HTC can claim is attributed to its HTC One flagship:
The new HTC One has performed well in the market, better than that of our hero products for the same period last year. We aim to extend the momentum as we enter into the second half of 2013. The new HTC One has also helped the company establish strong brand awareness and received numerous accolades as the world’s best smart phone. With the help of HTC One, we have regained superphone market share across major markets including China.
HTC attributed much of its woes to a lack economy of scale, resulting in a higher cost structure, and to having to clear out “aging products in the channel.”
Underlying the competitiveness of the smartphone market, HTC does not expect its fortunes to get much better in the next quarter. Despite promising a refreshed mid-tier lineup, it predicts that its third quarter revenues could be as low as NT$50 billion (about US$1.67 billion) and it could see its first ever operating loss (up to -8%) since going public in 2002.
Source : HTC