HTC posts Q1 earnings show decline in revenue and profits, company a huge Q2 improvement
HTC has released its final number for Q1, confirming a drop in revenue to NT$42.8 billion from NT$67.8 billion. Net profit’s took an even bigger hit, dropping to NT$85 million ($2.85 million) from NT$4.5 billion ($152 million) during the same quarter last year. The 98 percent profit drop does not come as a surprise since component shortages forced HTC to postpone the March launch of the HTC One. Though the device would have only been available for half a month, sales of even 250,000 more units would have had a significant impact on HTC’s bottom line.
Fortunately, HTC and market analysts are not dwelling too much on HTC’s Q1 performance. CLSA Asia-Pacific Markets analyst CK Cheng estimates that 750,000 HTC Ones were sold in the month of April and predicts HTC will be able to move more than 3.5 million units in Q2.
“I think our supply has greatly improved and in May we’ll be supplying a lot more. We’re also seeing pretty good demand, we just need to work hard to meet demand.” – Peter Chou