HTC Q1 2013 financial results: 98% drop in profit, almost 50% drop in revenue

HTC has been struggling for a long time and it was the company's hope that the recently launched HTC One would finally turn their fortunes around. But according to its latest earnings call, the company is still very much in trouble.

HTC's profits have fallen sharply suffering a 98% decline year over year. The company said its net profit was around $2.85 million, down from $152 million last year. This is the lowest profit the company has reported since 2004. Its revenue also saw a sharp decline steadying at around $1.45 billion compared to $2.3 billion for the same period last year.

Though the company is still in the black, these signs point to a very gloomy future. The company launched its HTC One flagship device a short while ago and even though the device was generally well received, including here on Neowin, supply shortages and limited distribution have dampened a lot of the enthusiasm around it.

Despite that, Peter Chou, HTC's CEO is optimistic: "I think that we have successfully launched the HTC One. We believe people are really getting our concept." He also added that he expects revenue to rise significantly in the next quarter.

Source: HTC Via: Cnet

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36 Comments

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HTC needs to get rid of Peter Chou asap and start reorganizing their distribution and costumer support channels or they'll die. And I don't see any company wanting to buy them.

Droid fans are dying for a premium quality device for their platform. HTC was the only one making reasonably higher build quality devices for this platform but it appears HTC will be out of the game pretty soon.

"...device a short while ago and even though the device was generally well received, including here on Neowin, supply shortages and limited distribution have dampened a lot of the enthusiasm around it."

Wow, for a second, I thought I was reading about the Surface.

Samsung is just eating everyones lunch period. Not sure what HTC can do at this point. Going WP exclusive would be very hard because the marketshare is so low and Nokia dominates what market they do have. Oh well, that's the nature of the beast.

I picked up a HTC One, and I must say i'm very impressed with it.
I've previously been a HTC owner before so it's good to see them trying at least.

The problem with HTC is not that they went Android....its the sheer amount of devices they produced and lack of support after. Consumer confidence is down and it will take a while to bring it back up. To say they would of done much better with WP is silly.

My 8x will definitely be my last HTC phone and that's despite the phone's design being a thing of beauty, better than the Lumia 920. If only I knew that my HD7 was not going to officially receive the WP7.8 update at the time, I would have abandoned HTC altogether and waited patiently for the Lumia 920.

But no-one knew which WP7 handsets were going to get it at that point in time and I got the 8x because the Lumia 920 launched in the UK, exclusive to EE and I wasn't interested in switching to a new carrier at those ridiculous contract prices for LTE or waiting for the exclusivity period to end.

My experience with HTC (on WP) is that unlike Nokia, the relationship practically ends the moment you hand over your credit card. With Nokia, they care about you long after you've purchased your phone with constant updates, fixes, improved and expanding 1st party apps/tools to customise your phone, app exclusivity deals and tie-ins, it's just win win win with Nokia.

HTC seem incapable or unwilling to support their users to any real degree other than Microsoft's OS updates (I got the GDR1 update) or like the recent "invalid SIM" error which finally forced them to act. It appears that their strategy is just to push sales hard at launch (usually on the back of someone else's product) and then leave it at that until the next product launch. Not good enough and never ever again.

HTC needs to go crazy. Release hardware which is completely unlocked so that we can install any firmware on it. Even symbian if we want to.

HoochieMamma said,

They do have some, but no one buys WP anyway though.

I have, and I know a number of other people who also have. Try again.

That numbers are terrible, but its normal if you consider One X was not succesful. HTC will be recovered by One, its probably the only "first-class" Android phone.

Tip: Do not enter the Android smartphone market, it will destroy your company. The only one making any money is Samsung, there are literally no other OEMs getting anywhere. If I were HTC I would probably gamble on Windows Phone as a key player next to Nokia or just exit completely.

Exactly, even Google is not making money from Android. These OEM's will turn to Windows Phone, and by that time it would be too late. Nokia has managed to create a separate ecosystem within WP Ecosystem, this will make things really difficult for these late comers.

Look at HTC 8X and 8S, if HTC had shown this kind of commitment to first or second gen WP devices, things would have been different. Now, they are just being out classed my Lumias'.

GauravAgr said,

Look at HTC 8X and 8S, if HTC had shown this kind of commitment to first or second gen WP devices, things would have been different. Now, they are just being out classed my Lumias'.

This is so true. From the advent of WP, I've gone from Mozart > HD7 > Lumia 900 > HTC Titan > Lumia 920 Red > Lumia 920 Cyan. If The 8X had been a day 1 device, I would never have gone back to Nokia. Now I'm all Lumia'd up, and happy to be here.

I will give credit to HTC for the cool kick stand on the HD7, and I still actually think the Titan is a really nice phone. But with the effort Nokia is putting into this platform, I'm sorry, really nice just isn't enough.

ZipZapRap said,

This is so true. From the advent of WP, I've gone from Mozart > HD7 > Lumia 900 > HTC Titan > Lumia 920 Red > Lumia 920 Cyan. If The 8X had been a day 1 device, I would never have gone back to Nokia. Now I'm all Lumia'd up, and happy to be here.

I will give credit to HTC for the cool kick stand on the HD7, and I still actually think the Titan is a really nice phone. But with the effort Nokia is putting into this platform, I'm sorry, really nice just isn't enough.

I own HTC Titan. It's a very nice phone. But I receive 0 customer support from HTC. Still stuck with Windows Phone 7.5 RTM. It'll be my last HTC phone. Won't buy another from them.

GauravAgr said,
Exactly, even Google is not making money from Android.

Google never did make any money from Android. Its free to OEMs to use. They make all their money with ads. Thought this was very well known.

ingramator said,
The only one making any money is Samsung, there are literally no other OEMs getting anywhere.

I guess you never heard of a company called LG.

ingramator said,
If I were HTC I would probably gamble on Windows Phone as a key player next to Nokia or just exit completely.

Which is funny, because HTC's original claim to fame was as a big Windows Mobile OEM, then effectively left and went Android when Windows Phone came along.

-Razorfold said,

What ingramator said is quite true, the only OEM making a boatload of money is Samsung.

Not what he said. He said no other OEMs are making money or getting anywhere. Which is not true.

Great phone (one of the best), but a dreadful company to deal with and the slowest OS updates which left previous owners disgruntled.

I bought a Nexus-4 over the HTC One based purely on the fact HTC shafted me on the Desire HD will they/won't they fiasco on OS updates.

Many of my friends also previous HTC owners and fed up with them.

HTC Wildfire = a joke of a phone lacking memory for more than a handful of Apps (and don't tell me about moving Apps to SD card!)

Very well deserved!!! Next time do not cheat your costumers!!! (HTC Desire HD ICS rom...)
Just hope that you go into oblivion!!!

onesolo said,
Very well deserved!!! Next time do not cheat your costumers!!! (HTC Desire HD ICS rom...)
Just hope that you go into oblivion!!!

And the HTC Thunderbolt which from what I understand was a lemon when delivered.

onesolo said,
Very well deserved!!! Next time do not cheat your costumers!!! (HTC Desire HD ICS rom...)
Just hope that you go into oblivion!!!

+10000, ridiculous they did five u-turns before deciding not to bring it -.-