With new chief executive officer Cher Wang at the helm, HTC had been looking to overcome its recent struggles in the last few quarters and get back to the game. But based on what Wang shared recently with investors, it appears that despite some success, the Taiwanese phone maker can expect more bumps along the way.
For the first quarter of 2015, HTC reported revenue figures of $1.4 billion. All well and good, considering that this figure is a definite 25 percent improvement over last year's numbers during the same period. Moreover, the Taiwan-based mobile manufacturer also recorded its strongest US revenue growth since 2011.
Via an official statement, HTC revealed that it managed to generate a profit (small but a profit nonetheless) of close to $11.8 million. The phone maker attributed part of its success to its strategy of offering tailored portfolios of products to various markets around the world. In this approach, emerging markets are offered inexpensive smartphone choices with only a few high-end smartphone options compared to markets in more developed regions.
HTC's first quarter of the year might be considered a success, but moving forward, the phone maker is expecting less than stellar sales performances in the next few quarters. The company stated that it expects its revenue to be somewhere between $1.5 billion and $1.66 billion. Comparing that with the $2.12 billion revenue that HTC posted last year in the same quarter, it would be a decrease of between 22 percent and 29 percent.
As of now, things do not look so good for the embattled Taiwanese phone maker. A few years ago, HtC has managed to gain some momentum in penetrating US markets. But this year, its market share among American consumers is falling fast. The latest estimates has HTC's market share at only 2 percent in the global smartphone market. And it is not going to get easy as industry leaders like Apple and Samsung continue to dominate the field by offering new products. The iPhone 6 has just helped Apple sell 61.2 million units of smartphones in the last quarter, while Samsung and LG have released new flagship devices with the Samsung Galaxy S6 and the LG G4 handsets, respectively. And lest we forget, Chinese phone makers like Xiaomi also continue to cannibalize the market shares of other phone makers by introducing cheap but feature-heavy phones to emerging markets. HTC did release its own latest flagship device, the One M9, this year. But despite good reviews, it has failed to take off in crucial markets around the world.
Wirefly Is America's Most Trusted Source For All Cell Phones, Plans, TV, and Internet Deals
Wirefly offers great deals on a large selection of smartphones, cell phones, tablets, mobile hotspots, and other wireless devices for the nation's most popular carriers. Use Wirefly’s innovative cell phone and plan comparison tools to ensure you are getting the best deal on the market. Shop with confidence knowing that Wirefly wants to help you find the best prices on cell phones, cell phone plans, TV, and Internet service.