HTC returns to profitability in Q4
The 24 percent reduction in operating costs HTC promised back in November helped the company return to profitability in the last quarter of 2013. HTC has reported quarterly revenues of NT$42.9 billion (a 29% decrease when compared to 2012′s Q4) with net profits of NT$310 million (roughly $10.2 million). While being in the black is a good indication that the company isn’t quite on the verge of total collapse, HTC’s projections for Q1 are a bit troubling. HTC is forecasting revenues from the quarter to range from NT$34 billion to NT$36 billion – 17% to 22% lower than HTC’s revenues in Q1 of 2013.
It’s certainly easy to read HTC’s earnings report and jump to the conclusion that 2014 will be much worse than 2013. HTC will have a tough time trying to remain profitable in 2014, but all the company really needs is one amazing product and a bit of luck to turn things around. The 2013 HTC One was considered by many to be the best smartphone of the year. If HTC can find a way to improve on the HTC One and its marketing strategy, 2014 could be the first step in HTC’s return to dominance as one of the world leading smartphone manufacturers.