updated 10:59 am EDT, Fri July 5, 2013
Phone manufacturer avoids seventh consecutive quarterly profit drop
HTC has failed to reach market analyst expectations in its latest unaudited quarterly results. Profits reached NT$1.25 billion ($41.6 million), below the NT$2 billion ($66.3 million) suggested by analysts, and while it is higher than the T$85 million made in the previous quarter, it is far below the NT$7.40 billion from last year.
Total revenues for the quarter hit NT$70.7 billion ($2.35 billion), according to TechCrunch, an improvement on the NT$42.8 billion ($1.4 billion) received last quarter, with the launch of the HTC One in more countries and carriers likely to be the main reason behind the uptick in sales. The company is reportedly looking to capitalize on its popularity by taking a page from other manufacturers in releasing a "mini" version of the HTC One. It is also said to be stepping up its marketing efforts, with further reports claiming that Robert Downey Jr. will be paid around $12 million to globally promote the brand.
The turn-around in profits could be considered a success for the company, as it avoided its seventh consecutive quarterly drop. Even so, HTC reduced the pay of its executives last month in the face of repeatedly poor financial results. Executive compensation, including salaries, retirement pay, bonuses, and profit sharing, was reduced down from NT$1.36 billion ($45 million) to NT$660.5 million ($22 million), with CEO Peter Chou seeing his pay reduce to below NT$100 million.