HTC forecasts decline in sales to continue

Once the global leader in Android smartphone shipments, HTC has been experiencing some hard times lately as the company's revenue has been declining on an annual basis for 11 consecutive quarters. Sadly, the chief financial officer of HTC, Chialin Chang predicts the third quarter of 2014 won't be the one to turn this around.

Although products like the HTC One M8 and others helped HTC boost its second quarter earnings, it seems like the sales of those slowed down. To make things worse Apple and Samsung are getting ready to launch their brand new handsets providing strong competition in the market.

Nevertheless, the Taiwanese firm will continue to be profitable with earnings-per-share of 0.05 New Taiwan dollars to 0.69 New Taiwan dollars, according to Mr. Chang. Despite the decline in revenue, the CFO notes he is still happy about the stabilized sales, expecting HTC to end these three years of bad luck with its new products, launching during the fourth quarter. The product line also includes a long-rumored Windows Phone 8 device, debuting as early as this month.

Mr. Chang also noted there won’t be a decrease in the workforce but the company will look to cut down its sales and marketing expenses. 

After three quarters of consecutive operating losses, HTC made a profit last quarter, thanks to the HTC One M8 and cost cuts. Time will tell if the new handsets will help HTC increase its market share, though analysts believe it will prove to be a tough challenge.

Source: WSJ | Image via HTC

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11 Comments

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Many years ago I had an HTC Windows Mobile phone. But I haven't had an HTC Android phone because they never seem to have what I'm after each time I'm ready to upgrade.

The HTC One (M8) is pretty much the best Android phone on the market so at least they're doing something right. Off topic: Your icon makes me hungry.

Vlad Dudau said,
The HTC One (M8) is pretty much the best Android phone on the market so at least they're doing something right
Agree.

Vlad Dudau said,
The HTC One (M8) is pretty much the best Android phone on the market so at least they're doing something right. Off topic: Your icon makes me hungry.

We had enough issues among personal friends with the HTC One that I didn't want to risk the same scenario with the M8. Thus, why I picked up another Samsung (even though I largely dislike Samsung; swappable battery doesn't hurt either)

The reason people are abandoning HTC is based on their past experience with HTC. In other words HTC is paying for its past mistakes (poor customer support, updates that take months to arrive if you're lucky at all). No super phone will save them from their demise.
Brand trust is the no. 1 reason people chose a brand over the other.

I've actually never updated my HTC. It just works.

Never had any issues with (and after) online banking on it either.

Agree, and the sad part is I think they have some of the best designed Android phones right now. Its their past thats holding them back. If Samsungs sales start going flat, then I bet it will directly affect them as well

I have always had a good experience with HTC and that has nothing to do with their decline. Samsung spent a ton of money on marketing and now they are the phone to get along side Apple phones.