HTC sees $41.6m profits in Q2, less happy outlook for Q3

We all know HTC has been having major financial difficulties over the last few years, but preliminary financial figures for the last quarter reveal some positive news for the company.

The unaudited figures show that HTC has had a pretty good Q2, fuelled by sales of its widely praised Android flagship the HTC One. Though exact sales numbers have not been made public, HTC managed to make a $41.6 million profit on $2.4 billion worth of revenue. This falls short of the $66 million that analysts had hoped for but it is still, by far, one of the better quarters that HTC has reported in recent years.

Unfortunately this trend doesn’t seem like it will last. According to Reuters, One sales seem to have slowed down towards the end of the quarter and they are predicted to slow further during Q3. There are also some reports saying that HTC has reduced their parts orders for the next quarter. This may hint towards a new phone but considering the One has barely been on the market for 4 months, that does seem unlikely.

With all of this taken together, and considering some of the other recent moves by the company, we may be looking at a not-so-bright future for HTC. While the company will no doubt be celebrating its return to profitability, when put into context, these figures lose some of their sparkle. HTC's largest Android rival, Samsung, today forecast $8.3 billion of operating profit for the same quarter.

Source: HTC

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13 Comments

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HTC continues to shoot themselves in the foot. Whomever is making the decisions at HTC is seriously deluded. They now have the reputation of abandoning their products very early. They only offer crippled phones to the US market (their phones in the last 2 years don't have microSD or swappable batteries) yet those phones in other markets (like China) have those features. The Chinese version of the HTC One has both microSD and swappable battery. No, HTC, you dug your own grave here.

I would say if they continue doing the right things (re: not ending support for the One S...) they should be fine. They did release the One with vanilla Android (which is how it should have been from the start) that a lot of people were looking forward to. Obviously they are not as big as Samsung but lets see what the future holds going forward.

HTC One is a good device. If their reputation was not so damaged, it would of done much better. But lots are upset with HTC and will be hart to rebuild confidence in consumers. If the HTC One comes to verizon, I will seriously consider getting it. That is if no new Nexus device comes soon enough.

I'm sure the One did relatively well for them but they also did other things to save money which probably help turn a profit. I read a post, though I don't remember where, that said they halved their CEOs pay, if they did that to the top guy they probably cut wages elsewhere. And ordering less parts helps to.

well if they're not going to support their phones for more than 15months then i am not surprised that consumers are looking for phones that are better supported. A lot of companies like to think that consumers are stupid, they are not and will quickly let companies know with sharp declines in items purchased.

alwaysonacoffebreak said,
That "analyst" should get an actual grip of how big Samsung actually is. 70% from mobile..yeah, no.

Saying "yeah, no" doesn't make it true.

That analyst seems to have an excellent grasp of how Samsung operates, as he is indeed correct that 70% of operating profits come from mobile. Look at Samsung Electronics' earnings for last quarter (Q1): http://www.samsung.com/us/abou...20130426_conference_eng.pdf

Operating profit for the entire company was KRW 8.78 trillion. Of that, KRW 6.51 trillion came from the IM division ("IT & Mobile communications"). Now divide: 6.51 / 8.78 = 0.741.

(Incidentally, mobile makes up 97% of the IM division's revenues. They could rename it the MI division.)

What I was talking about is Samsung Group (Thus I mentioned TV's to Military which goes under Samsung Heavy Industries I believe) but I guess this mixup can happen.