HTC has just released the preliminary results of its second fiscal quarterly financials, and the numbers are not very good. The Taiwan based phone maker states that it is expecting to post an operating loss in the amount of $166 million on unaudited revenue of $1.07 billion for the period spanning April 1st to June 30th of this year. Furthermore, the company is expecting a net loss before tax of about $256 million; after tax, HTC is looking at a figure of $260 million.
Back in October of last year, HTC had reported its first ever losing quarter. The market for Android running mobile devices has always been a very competitive field, but it was during this time that the Taiwanese mobile manufacturer first became truly vulnerable, perhaps pushed aside by mobile giants like Samsung, who simply has more resources and more reach, marketing wise.
HTC did try to make some adjustments. In recent years, the company had attempted to shift its focus on introducing midrange mobile devices in order to boost its sales numbers, at least in volume (unit sales). But it is becoming more difficult to even stay afloat as ongoing pressure from league leaders like Samsung as well as up and coming players like Xiaomi (and just about every Chinese phone maker out there) continue to eat away at HTC’s market share. As a result, the company has found itself in a more midrange field that is only getting more competitive quarter by quarter.
A losing quarter is truly unfortunate for HTC, especially when one considers that the company had been building a rather nice streak of profitable quarters. But HTC really can not deny that the signs were already there. As a matter of fact, in the last four quarters, the company had been posting decreasing net profits. But despite all that, a profitable quarter, no matter how barely profitable, gives one something to build on for the next. A losing quarter, however, is much more difficult to take.
HTC must focus its energy now in getting back to its profit making ways. For sure, that will be easier said than done. The Taiwanese phone maker had been busy the past few months working on new potential offerings, including its Vive virtual reality headset, and a new smartphone camera accessory. But these are still experimental devices, and if HTC really wants to post a positive bottom line come next quarter, it will need to introduce something that can really attract buyers.
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