HTC has reported a wider than expected loss for the first quarter of 2014. The company reported a loss of $62.06 million in the January-March period on a revenue of $1 billion in its unaudited results. This is the second net loss the company has posted in the last three quarters. Last quarter HTC reported a net profit of $10 million, which was achieved after selling its stake in Beats Audio for $265 million.
HTC announced its flagship One (M8) smartphone last month, which will be rolled out in global markets this month. Chairwoman Cher Wang also announced that HTC would start selling smartphones in the mid-tier segment ranging from $150-$300. HTC recently launched the Desire 310 in India and other markets.
“The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market,” Wang, had then told Reuters.
The launch of the HTC One (M8) coincides with the rollout of the Samsung Galaxy S5 with Samsung expected to muscle its way through with bigger marketing budgets and better relationships with global carriers. Early reviews of the HTC One (M8) have been positive, though the camera has been found to be disappointing. The Duo Camera setup is one of the talking points of the One (M8) that HTC plans to market.
The success of the One (M8) will also depend a lot on the pricing in non-carrier subsidized markets, where it is expected to be priced much higher than the Galaxy S5 and iPhone 5S.
Taoyuan, Taiwan – April 7, 2014 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today reported unaudited consolidated results for its fiscal 2014 first quarter ended March 31, 2014. Unaudited quarterly revenue was NT$33.12 billion and net loss before tax was NT$1.88 billion. Operating loss was NT$2.05 billion, and net loss after tax was NT$1.88 billion, or -NT$2.28 per share based on 823,438 thousand weighted average number of shares.