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HTC Source | August 17, 2017

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HTC announces plans for job, product cuts with disappointing July sales numbers

HTC announces plans for job, product cuts with disappointing July sales numbers

This morning, HTC announced that July’s unaudited revenue came in at NT$7.41 billion, bringing total (unaudited) revenue from January through July of NT$81.94 billion. The revenue numbers for July are 14.65% lower than what HTC posted in June and a 30.15% drop when compared to July of 2014. While we had hoped that HTC’s declining revenue would level off, HTC has revised its earnings forecast for the third quarter, projecting a loss of NT$5.51 to NT$5.85 per share.

HTC’s Chief Financial Officer Chialin Chang announced that HTC will cut jobs and discontinue certain product models in an effort to reduce cost and focus more on high-end devices. The cuts are expected to be “significant” and “across the board,” intended to reduce overhead and allowing the company to re-position itself in the marketplace.

It’s impossible to predict how things will turn out for HTC. The company already went through several rounds of restructuring over the past 18 months when HTC’s market share took a plunge. There’s also a way to cut overhead costs, but HTC needs to ensure that it doesn’t cut back so much that it hinders the development of new and innovative flagship devices.

We’ll be keeping our fingers crossed, hoping for the best.

Source: HTCReutersBloomberg

About Nick Gray

Tech enthusiast, Android user and founder of the first HTC blog – Nick Gray has been blogging about HTC phones before most people knew what a smartphone even was. Over the years Nick has owned and tested dozens HTC devices and is constantly flashing new ROMs to his Android phones.

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Comments

  1. Jeans

    Snapdragon 810 did “help” a bit. They also didnt give enough PR after flop with processor if any issue is really.

  2. corona10

    Just learn to market your devices better. And stop paying RDJ to do it. Really just stop doing everything you’ve been doing. Its just not working. You can’t do small iterations of your flagship and think you’ve innovated. You are not Samsung or Apple, you cannot get away with that.The M9 proved it. Listen to your consumers and what they want from your device. Your vision of what you think we want isnt working.And stop making so many Desire variants. Its confusing.

    • Harold Goldner

      Agree. They need to do one Desire, one flagship, and perhaps a midrange phone (the Desire is entry level, they just don’t get that). They should abandon the phablet market, it doesn’t make them any money and they have zero market penetration. They should also retreat from the tablet market; the Nexus 9 was overpriced and has nowhere near the market success of either of the Asus Nexus 7’s. Sometimes I feel that HTC is more about “culture” and “personality” and less about making money. That’s great for a non-profit; not so much for a corporation trying to actually make money.

  3. Bananaconda

    I’ve owned One X, M7 and currently M8, and i didn’t wan’t to upgrade.
    My next phone probably will be a LG, they’re doing it right.
    I live in Portugal, and you may not believe when i say this, but it’s hard to find a store that sells HTC’s, when you enter most stores in Portugal, you see a big Samsung and Apple “show rooms”, and maybe you can find an HTC hidden next to the rest of all the other brands.
    Till today, i’ve only seen 2 people with and HTC M8, and it’s gonna be 2 years old.
    HTC: Start investing in decent markting, stop changing your strategy every year, stop producing so many similar phones, put something new in your products, of please don’t try to sell us the same phone with a different name, that’s Apple.
    And for f@uck sake, start listening to the people who want to buy HTC’s, go to reddit, foruns, anything, but see what people want.

  4. HTC refuted a Reuter’s report that said it plans a round of layoffs and to discontinue some of its models to reduce its operating costs. The company recorded a loss per share of NT$9.27 (US$0.20) over the first half of this month and was said to focus on high-end models to compete with Apple and Samsung, according to Taiwan’s Central News Agency.

    http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20150808000041&cid=1102