HTC today announced its unaudited March quarter earnings, having registered its worst profit ever since the company began reporting earnings eight years ago. The Taiwanese smartphone vendor’s net revenues fell a staggering 98 percent to just $2.8 million, posting its sixth successive quarterly decline.
“HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announces unaudited consolidated results for 1Q 2013. For the first quarter of 2013, total revenues reached NT$42.8 billion. Unaudited operating income was NT$43 million, net income before tax was NT$103 million, net income after tax was NT$85 million, and unaudited earnings per share after tax were NT$0.10 based on 831,227 thousand weighted average number of shares.” Also Read - Intel NUC 11 Extreme Kit with space for a 12-inch GPU launched: Price, specs
This quarter’s decline can be linked to the delay in launching its flagship Android smartphone, the One, which is crucial for HTC’s revival. The company blamed component shortage for the phone’s unique “ultrapixel camera” for the delays and the device will now only be available in April in most markets. This cuts down the lead period to Samsung’s Galaxy S 4, the latest in Samsung’s Galaxy series of smartphones that has proved to be HTC’s nemesis. Samsung, with its unmatched marketing budgets, has become the de facto leader among Android vendors and garners most of the profits. Also Read - Huawei P50, P50 Pro with OLED display, HarmonyOS launched: Price, features
HTC needs a miracle to get out of the rut it has fallen into. A series of product delays, botched marketing and unrealistic pricing has led the company from being top-tier Android smartphone vendor (not the largest) to an also-ran. CEO Peter Chou has said he would resign if the One does not succeed and that would be the worst thing that could happen to the company. Also Read - Airtel Rs 79 plan vs JioPhone Rs 75 prepaid plan compared: Which offers better value?
We are expecting HTC to launch the One in India later this month.