HTC Warns Of Q3 Loss As Profits Slide

HTC has warned it could post the first loss in its history in the third quarter of 2013, as sales of the new flagship HTC One smartphone failed to reverse the decline at the struggling Taiwanese manufacturer.

Having posted revenues of NT$70.7 billion (£1.55bn) and profits of NT$1.25 billion (£27.4m) during the second quarter, HTC expects revenue to slide to between NT$50 billion and NT$60 billion in Q3, while it has predicted losses of up to eight percent.

HTC losses

The HTC One has been well received by critics and consumers, while the company has just released a smaller version of the smartphone, the HTC One Mini. However this acclaim has not translated to financial success, with profits down by 83 percent year-on-year. This was a huge blow for HTC, which had pinned its hopes on the smartphone.

However, the company said the brand awareness created by the HTC One is cause of optimism, while it plans to expand its mid-range offering to claw back market share ceded to the likes of Apple and Samsung in the global smartphone market.

“My leadership team continues to focus on execution,” said Peter Chou, CEO of HTC. “We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H.”

HTC’s troubles have seen it struggle to retain key executives as a number of top employees have departed the company in recent months. Most recently, COO Matthew Costello stepped down from his position, paying the price for component shortages which led to the delay of the HTC One.

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