HTC has posted its Q1 earnings report for 2013, revealing the company’s lowest quarterly profits on record. For the first quarter of 2013, total revenues reached NT$42.8 billion with net income (profits) after tax shrinking to NT$85 million ($2.8 million USD). When the net income numbers are compared Q1 of 2012, HTC is looking at a 98.3% year-over-year decline.
While HTC was expecting revenues and income to slip in Q1 of 2013, the numbers took an unexpected nose dive when camera component shortages for the new HTC One forced the company to delay the handset launch in Europe, Asia and North America. The HTC One was initially slated for a mid-March global launch, but the device has only need released in less than a half dozen countries across the globe. With the US launch currently scheduled for April 19th, HTC’s numbers for Q2 should see a significant improvement.
Source: HTC
So sad. I’m in Taiwan, and there’re obviously not enough HTC One here. Many people who pre-ordered haven’t got their One yet, including me. But it’s worth waiting for.
The One might be part of the problem, but to me isn’t the whole reason.
To me it’s their one device per market range per year. Sure Samsung flood the market is OTT but perhaps the days before the Sensation hold clues as to how to make HTC great again.
Or was the sensation the driving force away from HTC for many due to crashing and memory overload issues?
Only issue is if Microsoft ditch mobile again and Nokia jump into the android ecosystem. HTC would be in trouble then.
In the days before the Sensation, HTC did not have a lot of competition in the Android sector. The Samsung Galaxy S was fairly successful, but that was the first time Samsung delivered a product which could actually compete with HTC.
If you look at HTC sales numbers, you’ll see that they are selling quite a few phones, the problem is that the company has spread itself thin over a wide variety of devices. Developing, manufacturing, selling and supporting so many devices simply means HTC can;t put any money in the bank because its overhead costs are so high. The idea with the HTC One is to have a single flagship device which accounts for the majority of the company’s sales. yes, they will still manufacture other devices, but the company will be able to lower its operational costs by reducing the total number of phones it brings to market.
I still think that the HTC problem is only one: MARKETING!
I’m from Brazil, and it’s unbelievable how HTC got out here in the countrty’s best moment, 2012. I had an HTC One X and almost everyone tought that was an chinese (bad) company. When they tried it, they loved. I’m using a Motorola D3 while HTC One doesnt shows up, and already knowing some bad things about the AOSP. I always loved Sense 4. More than Sense 5 actually…