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HTC posts small profit for Q2, forecasts loss for Q3 2013

updated 08:26 am EDT, Tue July 30, 2013

HTC continues to struggle despite relative success of HTC One

HTC has posted a small profit after generating $2.36 billion in revenue for the second quarter of 2013, reports Reuters. The result is lower than analysts revenue forecasts of $2.53 billion for the quarter. The result is also just over half the revenue that HTC generated for the corresponding quarter in 2012. The outlook remains gloomy with the Taiwanese company also forecasting a further decline in revenue of up to 30 percent heading into the third quarter, citing fierce competition and price reductions necessitated by the need to clear older inventory.

Heading into the fourth quarter, HTC believes that it has instituted product strategies that will help to return the company to profitability. Its HTC One high-end smartphone is said to have performed "better than that of our hero products for the same period last year," and has performed well in China -- although the company declined to cite specific sales figures for the device. The company goes on to explain that it has "plans underway to launch a range of innovative and competitive mid-tier products in the coming months," which includes the recently launched HTC One mini.

Despite gaining widespread accolades for its HTC One, the device was launched late, and fell into the launch window of the Samsung Galaxy S4. An additional problem facing the company is that as its sales have rapidly declined over the past 12-24 months, it has also it has impacted on its cash flow limiting its ability to both develop high-end products as well as compete with Samsung and Apple's marketing muscle. It has, however, set aside $12 million in fees for a marketing campaign spearheaded by Robert Downey Jr. to promote the HTC One.




By Electronista Staff
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