HTC posts a $138 million loss in Q3 as revenues continue to decline
With the wrap up of the third quarter, HTC has announced that it failed to make a profit between July and September. Revenue for the quarter came in at NT$21.4 billion, a 49% drop when compared to the third quarter of 2014 when HTC’s revenue reached NT$41.9 billion. The dramatic decline in revenue resulted in a new loss of NT$4.48 billion (US$138 million) for the quarter.
The numbers HTC shared were not shocking as HTC issued a quarterly earnings projection earlier in the quarter. HTC is also undergoing a massive internal reorganization which will cut nearly 15% of HTC’s entire workforce. Since the reorganization was announced in August, the full financial impact of the changes will not likely be felt until the fourth quarter or even the first quarter of 2015.
But there is a glimmer of home on the horizon for HTC. The upcoming launch of the HTC One A9 may be the first step on HTC’s road to recovery. The phone isn’t expected to blow away the competition, but it will be a beautifully crafted mid-range device, backed by a significant marketing campaign – something that was missing with the launch of this year’s flagship One M9. If HTC can generate significant interest in the phone and secure availability at service providers across the globe, the HTC One A9 may turn into the best-selling HTC phone of 2015.