Sales down as company looks to mid-level devices

HTC has released its finalized financial results for the fourth quarter of 2013, showing that the struggling Taiwanese manufacturer avoided a second quarter of losses, but with a drop in revenue. Quarterly revenues were NT$42.9 billion, down from NT60 billion in Q4 2012, with net profits of just NT$310 million (around $10.2 million). EPS (earnings per share) was NT$0.38, while gross margin was 17.8 percent and operating margin was -3.7 percent. 

In today's earnings press release, HTC CEO Peter Chou said the company would focus on "building a compelling mid-range portfolio," alongside its high-end offerings. That sentiment was echoed by Chairwoman Cher Wang in an interview with Reuters today. Wang admitted that HTC "didn't do well" in 2013, saying that it had "missed a huge chunk of the mid-tier market." In the same interview CFO Chailin Chang said HTC was targeting the $150-300 price range for its upcoming mid-level products. 

Meanwhile at the high-end, HTC execs reportedly said invites would be sent out in a couple of weeks for the launch event of HTC's next flagship phone. The successor to the HTC One, known by the codename "M8," has appeared in online leaks in recent days.

Looking ahead, HTC predicts revenue between NT$34-36 billion for the first quarter of 2014, with a gross margin between 21.5 and 22 percent.

Source: HTC, Reuters


Reader comments

HTC makes modest net profit in Q4 2013, but revenue declines


Ummmm... they made a profit. Which is more than a LOT of phone manufacturers who aren't named Apple and Samsung can say. Where was anyone whining?

LOL! Seriously?

It's not Moyes who decided to chip the ball to the other team's keeper with less than two minutes to go. That was Rooney.

It's not Moyes who headed the ball into the center of the pitch with less than one minute to go. That was Vidic.

It's not Moyes who stops running with his man, and allows him a tap-in. That was Fletcher.

All of these are veteran players, who know better. Those that want to fire Moyes aren't looking at facts.

I dunno, I think he should have kicked the field goal and he still would have had a possession later to tie it up.

If HTC sells a new version of the HTC One Max with on screen buttons & new Snapdragon 805

I would gladly buy it

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Sell a Google Play Edition of the HTC One Max & people will buy it

Like me

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Having a sealed battery is something such a small number of people care about. The average person is going to get a day of battery life out of any smartphone and plug it in at night. Very few people care about this.

I have a charger at home, a charger at work, an a charger in my truck. There's also plenty of portable devices out there (mini battery pack) that can provide power when an AC source in not available. Bottom line is that there's plenty of power sources available.

The sealed vs non-sealed debate is over... sealed won.

I used to carry extra batteries with my HTC Evo and change them out if I was away from a charger. With my One I almost never have to charge before I get home at night and if I do I have a portable charger that's not much bigger than the batteries for my Evo but gives me more than 1 battery's life worth of charge. If having a sealed battery is really a problem then you aren't very resourceful.

I wish HTC all the best. I though their One phone was to most beautiful Android phone last year. In addition to the new HTC One (M8) coming out this year I'd love to see an updated HTC One Max made with the same solid-body aluminum chassis. Would also love to see the 64GB version of the One/One Max available in general release other than last year's Developer's Edition. The Google Play edition of the One was a nice take as well. So we'll see what this year will bring for HTC.

Good on HTC!

I will take less revenue for them to maintain profitability. It is a good step for them. I really think that they need to take the Max and give it an H-Pen to provide some competition to the Note 3 (4) this year.

Goes to show even if you make the best Android smartphone available you won't necessarily be the profits giant. I believe my blue HTC One from Verizon was the absolutely most gorgeous and refined phone of 2013 in terms of hardware and software.

That being said, I had to swap it out for a Droid Maxx because I just couldn't keep it pristine being a klutz and all.

I bring that up because I believe that's partly to blame for HTC being small in a world of giants. There simply is too much competition. Lots of options for even the most discerning, demanding customers. There is many, many powerful and capable phones......many of which are made by companies that have a very large and diversified product portfolio. The playing field is not even and HTC can't be expected to be as prominent as the big guys.

They better fix their thought of midrange phones because the desire 600 costs more than the nexus 5.

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Not when you factor in that Google is picking up a significant portion of the costs. The nexus 5 should cost 5-600 like all the rest.

That's a load of crap. They might not be making HUGE profit on it but they are not losing money on it either.

Do what moto has done. Make a cheap mid range device that performs great. None of this cheap means junk HTC if you want to succeed.

They keep saying this but there are loads of cheaper phones anyway there mini wasn't that bad a phone I suppose. There are so many variants its confusing

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I love my HTC One but the quality of the equipment won't save the company with the marketing dept they have. They are absolutely terrible!

How many of you remember the Sony Betamax? Much better image quality than VHS (and if I remember correctly it used a smaller tape) but marketing was inadequate and the lesser technology won.

Betamax was prohibitively more expensive than VHS. Catering to the mass market significantly improves chances for success.

I need a tablet or phablet to red my comics.
If HTC offers either this year, they'll get my business.

If HTC wants to hit the mid to lower tier market, then they need to make their offerings better than the Moto G. Even then, the Nexus 5 16gb is only 350 bucks off contract for high end hardware. Sure Samsung offers a diverse mid tier selection but they are marred by bloatware and their resource hog Touchwiz UI.

If HTC does their hardware right, combined with effective marketing, then they have a fighting chance.

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Typical soccer banter... The nerd's sport of course. And HTC did crap. Only 310mil in profits? That'll sustain for a week. HTC is out already... Aside from the geeks the casual users only liked the one cuz it had beats audio. Take that out and all people see is an iPhone wannabe.

posted with a galaxy note 3. h8ers gon' h8. live2win#swagface#switchedOn*_*

HTC's CEO has been asleep at the wheel since 2010. he takes no responsibility and has never been held accountable. is he f*****g Cher? do you hear me Chou??????????????

HTC, take my advice.

Continue making awesome phones, continue your update policies (deadlines, transparency) and BETTER ADVERTISING.

Jason MacKenzie would probably be a better CEO, IMO.

Posted via Android Central App on my HTC One running CM11.