HTC money

Profits fall 83 percent year-on-year in second quarter

HTC has announced its unaudited financial results for the second quarter of 2013, with total revenue reaching NT$70.7 billion ($2.35 billion). The Taiwanese manufacturer reported unaudited operating income of NT$1.05 billion ($35 million), net income before tax of NT$1.52 billion ($51 million) and net income after tax of NT$1.25 billion ($42 million). Unaudited earnings per share were reported at NT$1.50 ($0.05).

The numbers show that HTC met its own forecast of NT$70 billion in revenues, however Reuters reports that profits fell short of analysts' expectations of NT$2.02 billion. What's more, it's an 83 percent fall in profits for HTC compared to the same quarter last year. The monthly breakdown shows that HTC's revenues fell almost 24 percent to NT$22bn in June, after having risen to NT$29bn in May. The lower June numbers could represent a cool-off in the hype and publicity surrounding the HTC One, which launched in March in parts of Europe, and late April in the U.S. In addition, rival Samsung's new flagship handset the Galaxy S4 has been heavily promoted during this time.

Nevertheless, the numbers do shown a turnaround from the disastrous figures posted in Q1, which saw the company barely breaking even after posting its worst ever financial results. New products on the horizon for HTC include the Butterfly S for Asia, as well as the rumored One Mini and One Max, new variants of its flagship HTC One device. The manufacturer will be hoping that a fresh summer product line will help it maintain momentum in the third quarter.

Source: HTC, Reuters

 

Reader comments

HTC hits own Q2 revenue target, but June income slumps

18 Comments

Once HTC updates and supports their products for more than 1 year, adds micro SD cards and removable batteries, their sales would go through the roof. I had to get that fallacy out the way...lol.

I'm curious to see how this pans out for Q3 and part of Q4. I didn't see mention of HTC having to lower their projections based on an increase in spending for marketing purposes.

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Don't really see a need for slow micro SD card when you have 32 GB internal, and lots of cloud storage options as well.
removable batteries will be nice though.
As for dev support from HTC, I don't even bother.
Just flash things on my own.

those "slow micro SD card" are perfect for people with 40G+ Videos & Music they want to consume where cloud service don't work(like on a plane). Unless phones start shipping with 64GB as default, the demand for micro SD slot won't stop.

The One is a great phone, but the 64GB version cost $300, for the same price I can get a 16GB GS4 with a Case & a 64GB micro SD card. The dual speaker is great, but in exchange its screen size is 13% smaller than GS4.

I don't need a removable battery and expandable memory so I support HTC. I have their One. I love what the phone does. Nothing more, nothing less. I prefer it over any other phone. It's just too bad that people don't realize that the One has more usable features and more to offer than they think.

At least they are still profitable. Samsung is definitely eating their lunch, but if they can keep doing, solid promotions like they've been doing for the One and and coming out with great products, then I think they have a fighting chance. I really think that they should adapt the apple strategy, however, and only make one really nice phone for the US every so often, and then make that phone their midrange device the next product cycle, and so on.

I think the strength of the HTC One's sales train may last longer than the One X's did. Their advertisements aren't fantastic but they do enough.

One major mistake like unsupporting One S by updating to 4.2, It will lead to bankruptcy and they should please me by implementing an SD card and a removable battery in their products.

The One is the most desirable phone. If Verizon can start selling it quickly enough there will be another bump in sales. Wait too long and the flagship buyers will hold off for the snapdragon 800 devices. The One Max will be a winner, especially if they hold the bezel size down as rumored. Interested in seeing if the butterfly s will make it to the U.S. as a DNA 2, since I love the wireless charging.

If HTC One was the most desirable phone, it's sales would not have been only 1.2 million in May and a loss of 24% in June. It would have had 10 million sales instead of Samsung and 20 million by the end of June.
Doesn't sound too desirable to me.

I wonder if the massive stock drop was the inspiration for the HTC One? I presume so, and if so, the company may come out better than it would have had they not had the massive stock dump. The One is really the right direction and they really need to run with it.

Darn it! The HTC First didn't sell! How could no one see that coming?!

I think HTC is trying too hard and competing against a Samsung that also tries too hard. Perhaps HTC should try to be more lean and to the point. Yes it's great to have speakers on the front, no you didn't have to co-brand it with Beats Audio. Sense is great, Vanilla android is great too.
HTC keeps on making costful choices that don't reflect any increase in price or sales of the phone.

not sure if serious...

Of course you had to co-brand the speakers with Beats. You already have the contract, your already paying out the money, you might as well use it as a selling point which was the whole idea to begin with. Vanilla "works" but you do not get the most out of your phone without Sense. Comparing the photos of Sense vs Vanilla you can see that. I am not against offering at an option, but it should not be a first option for the consumer.

But I do agree with you, I hope that they did not pay anything for the "First" I am not sure who thought that was such a great idea.

Hey everyone, chill out. HTC will be fine. Check this out.
1. People that purchased the ONE X, EVO 4G LTE, ONE X +, one year ago are not going to pay full price for a new phone.
2. Their profit numbers will be better next year when the old two year contracts are up.
3. Verizon hasn't sold the phone yet.
4. With Sprints new deal, they will open new LTE markets faster.

It is quite obvious from reading other phone reviews on multiple sites that the majority of people like the HTC ONE better than all other smartphones, mostly because of the hardware. But now, there will be a mini and max version of the device.

Maybe if Verizon and HTC got off their asses and started offering the One already, they wouldn't have had such a shitty quarter. The delay and lack of information is absurd.

Verizon did this to HTC.
If the One had been on Verizon during its launch, the GS4 would've had less traction. People need to realize Verizon makes up for 1/2 of device sales in the USA and that's just because in general, us Americans like getting screwed.

From the DARK AC App!

Yes BUT

HTC shouldnt have had the problems that pushed the ONE into the same launch window as the SGS4

I am sorry though, Samsung was gonna get theirs no matter what. Too many people are in the Samsung world to pull out all that fast.

Next year HTC needs a killer phone and an extra month of sales

@Alex Dobie

Thanks for the post.

product will be more attractive, low price and more powerful if there ome strong competitor in the competition field. About Smartphone matter, hope HTC, Motorola and so on will become more active. Then we will get more special and surprising technology on our hand soon and in low price.

Thanks in advance