updated 06:13 am EST, Mon February 10, 2014
Fourth quarter results of 2013 show year-on-year decline in revenue
HTC will be moving towards offering more lower-specification devices in the future, the company has revealed. The move toward mid-range smartphones comes at the same time as the company announced its results for the fourth quarter of 2013, as well as an estimate for the first quarter of 2014 suggesting it will see another drop in revenues.
Speaking to Reuters, Chairwoman Cher Wang advised "The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market." HTC Chief Financial Officer Chialin Chang said the company would move to add devices in the $150 to $300 price range, though stopping short of entering the "very, very low-end market." The mid-range devices would be accompanied by premium releases, such as the rumored flagship M8, with Chang stating "The two cylinders are going to be fired together."
The latest Q4 2013 financial results reveals a quarterly revenue of NT$42.9 billion ($1.4 billion), a decline from the NT$60 billion ($2 billion) in the same quarter of 2012 and the NT$47 billion ($1.5 billion) from the previous quarter, and a quarterly net profit of NT$310 million ($10.2 million). Revenues for the first quarter of 2014 are expected to be between NT$34 billion and NT$36 billion ($1.12 billion to $1.19 billion).
HTC CEO Peter Chou reiterated the mid-range move in the financial release, adding "we are going to communicate better with consumers," possibly as a reference to its examination of its marketing efforts. The statement also mentions the recent patent deal with Nokia.