frameborder="0" allowfullscreen>

Q2 numbers are it: the HTC U11 failed to return HTC to profitability

HTC has shared its Q2 earnings report for 2017, marking the company’s 9th quarterly loss. Revenue for the quarter came in at NT$16.1billion with a gross margin of 13.7%, but the company’s operating costs exceeded its income yet again, resulting in a net loss of NT$2.2billion or $72.47 USD. 

With all the positive reviews of the HTC U11 circulating the web, some were expecting that sales of the new phone would help significantly reduce HTC’s losses for the quarter if not eliminate them completely. The good news is that Q2 of 2017 was the second best quarter HTC has had since Q1 of 2015 when the company managed to pull in $11 million in profits.

As we’ve stated before, the HTC U11 is a step in the right direction for HTC. Unfortunately, lack of retail availability and sales support from major US carriers has limited the phone’s sale potential. Hopefully, sales of the phone will continue to grow in Q3, but it’s doubtful that it’ll reach the momentum needed to return HTC to profitability in 2017.

Source: HTC

 

 

 

 

Total
0
Shares
9 comments
  1. HTC’s refusal to do business with Verizon is just flat-out stupid. The Ultra’s don’t run on the network; the Bolt and A9 were Sprint exclusives, and the U11 lacks a CDMA radio. The last solid (and still reliable and extremely good) Verizon HTC handset was the 10, and 15 months is a century in cell-phone sales.

    1. Yeah exactly. Although the U11 DOES work on Verizon too. Somehow they made it so the Unlocked one ALSO works on Verizon too (though not Sprint I don’t think). This is per the HTC U11 buy page on HTC.com. I thought it was weird too, but someone explained they were able to make it Verizon-compatible despite it being a GSM-phone.

      They should’ve done business with all the major carriers, not just Verizon and Sprint. T-Mobile is QUICKLY rising as a major player, and AT&T is still #2 to Verizon. HTC and Sony need to sell through carriers again here in the U.S. if they EVER wanna matter.

    2. HTC would have loved to have the U11 be fully compatible on Verizon, but they refused to carry the phone and devices which are not approved by Verizon cannot work on the company’s CDMA network. Verizon simply did not think that the HTC U11 was worth their time.

      1. Nick,

        I don’t understand. HTC is advertising the unlocked U11 as being compatible with AT&T, T-Mobile, AND Verizon. Plus they also have a locked Verizon U11 as well. So when you say “devices which are not approved by Verizon cannot work on the company’s CDMA network”, I don’t get how that applies here.

        Also, where did you hear or read that the carriers were the ones who decided not to carry the U11 (besides Sprint)? I guess that makes sense since T-Mobile decided to stop carrying the 10 only a few months after it was initially released.

  2. That’s what happens when you make your phone a “Sprint Exclusive”. It should’ve been available through ALL 4 major carriers. It’s not enough to just sell it through Sprint and the HTC.com website (in addition the Best Buy), etc. People go to carrier stores to check out phones. Not really so much technology stores like Best Buy.

    1. The reason that the U11 is a Sprint exclusive is that T-Mobile, Verizon and AT&T refused to carry the phone. Because the HTC 10 did not sell well, service providers were not that enthusiastic about the U11.

      HTC did not willingly make the U11 a Sprint exclusive.

  3. The only people that buy HTC products is HTC enthusiast. I’ve liked HTC since the EVO and it’s been an interesting journey with HTC. Honestly, I’m not sure what they can do to turn it around. Perhaps re-release the HTC One or One Max with updated software and hardware. 🤔

  4. Nick, thanks for clearing that up. I’m so sick of people blaming HTC for the carriers decision not to carry the device. This device wouldve sold very well if it had been avaialble to all the carriers. And I knew it wasnt HTC’s decision but the carriers. Why would they limit their device’s availability that way when they need sales? But people have been bashing them all summer for its limited availability and never seemed to get that it wasnt HTC’s decision for the carriers not to have it.

Comments are closed.

Related Posts