It appears that things are not looking up for HTC. During the second quarter of this year, HTC sees its revenues drop significantly and its profits turning to losses. Apparently, the recent release of its newest flagship device, the One M9, was not enough to improve the Taiwanese phone maker’s sales performance.
HTC posted a total revenue of $1.04 billion for the second quarter of 2015. But when compared to its revenues during the second quarter of last year’s, this year’s numbers are frighteningly low. The $1.04 billion revenue is just about half of the $2.08 billion the company managed during the same period in 2014. Last July, the company had forecasted lackluster results for the recently ended quarter.
As for the Taiwan-based mobile manufacturer’s profits, it dropped to a loss of $163.2 million. That is certainly a massive decrease compared to one year ago in the same quarter, when HTC posted a profit of $76.8 million.
The quarter that spanned April through June was particularly difficult for HTC. Despite launching a new flagship device in the form of the HTC One M9 device, the phone maker was not able to attract enough buyers to generate a profit. It seems that mobile users of the world were content to purchase other smartphones, like Apple’s iPhone 6 or Samsung’s Galaxy S6, but not HTC’s. Also, the phone maker had to deal with the increasing threat of Chinese phone makers like Xiaomi and Huawei who continuously erode everybody else’s market share.
And that is not all, HTC itself is in the midst of a lot of internal changes. Back in March early this year, its long time chief executive officer Peter Chou was replaced by Cher Wang, co-founder and chairperson of the company. Even though Chou is still in the company working on developing new products, the change in leadership has no doubt affected the company’s operations. Furthermore, HTC also lost its design chief Jonah Becker last March.
Several years ago, HTC was considered one of the leading brands in the smartphone industry. But recently, it is getting more difficult for the company to keep up with the Apples and Samsungs of the world. Perhaps HTC has begun to realize that it can not win much in the field of smartphones. It has certainly started to venture into making other gadgets, including its Re camera, its Grip fitness band, and its Vive virtual reality headset. There is no telling yet if this is a wise move for the phone maker, but if it can lead to success, it just might be the only real feasible other option left for HTC at this point.
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