Modest quarter for HTC: profits increased, but failed to meet analysts’ forecast

July 5, 2013
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HTC revealed its financial results for Q2 2013 – while the full launch of the One brought a modest increase in profits, the company failed to meet analysts’ forecasts.

HTC CEO Peter Chou (4) Credit: HTC

Today HTC announced its revenue and profit for the second quarter of 2013, pouring cold water over some market watchers’ hopes for a turnaround.

Despite very good performance in May, the overall results in the quarter were dragged down by poor results in April, the month when the One was originally scheduled to launch, and June, when Samsung kicked the Galaxy S4 machine into high gear.

In Q2 2013, HTC brought in revenues of $2.35 billion, a sharp decrease compared to the same period last year, when revenues clocked in at $3.05 billion. On the bright side, the launch of the One and the good performance of the Butterfly allowed HTC to bag roughly $950 million more revenue than in the first quarter of the year.

In terms of profit, HTC again managed to end the quarter in the black; the company never ended a quarter with a loss in its entire existence. Profit in Q2 was a measly $41 million, compared to just $2.8 million last quarter. This time last year, HTC recorded a profit of $248 million.

HTC widely missed the forecast consensus

While revenue for the quarter was fairly healthy, almost reaching the levels from Q2 2013, analysts cited by Reuters had bigger expectations. HTC widely missed the forecast consensus, and, worse than that, the outlook for the next quarter is just a bleak.

Sales of the One already began to lose steam, while the Butterfly s has only been released in Taiwan so far. The Taiwanese company is expected to release a Mini variant of the HTC One in August, with an oversized Max version to follow in early autumn. Meanwhile, Samsung is powering ahead with the Galaxy S4 family and a myriad of other devices, while the Note 3 looms at the horizon.

To be fair, it’s not just HTC that’s doing badly financially. With demand for high-end smartphones waning, a weak global economy, and fierce competition, most players are suffering. Not even Samsung, the star of the industry, could beat expectations this quarter, despite record profits.

Comments

  • Mike Bastable

    Despicable reporting from Android Authority AGAIN!, i expect more of Bogdan than this. Hours earlier the Samsung results showed them failing to reach their targets and a over reliance on Moblie profits as other areas stutter. As a result their shares have taken a beating…where is this being reported on Samsung, sorry Android Authority. Meanwhile HTC solving its supply issues on the global roll out of the HTC posts a profit and shows revenue growth this is spun to be a huge negative.

    I think itis time that Android Authority seriously consider either becoming a Samsung site, or installing a Senoir Editor who ensures that all companies are given an honest coverage. Samsung deserves more focus purely because it sells the most phones, however the amazing Editorial bias shown on this site is damaging to the credibility of the site. A site i once referenced for information i now read “for a laugh” or just to be amazed at the continued idiocy of Nate Swanner, a trend which if you read the comments after his trite postings seems to be growing among the loyal commenters to this site.
    So AA grow some, and become (again) the Authority YOU once WERE!

    • http://AndroidAuthority.com/ Bogdan Petrovan

      First, thanks for reading. I am sorry that you feel that way about our coverage. The post on Samsung’s results is being worked on as we speak. Another post is coming from Robert Triggs discussing the problems that mobile manufacturers in general, including Samsung, currently face. Do you honestly believe we’d choose to ignore such a report to make Samsung look good?

      If you search through the site, you’ll see that we covered amply Samsung’s sales slowdown. I think we were the first Android site to report on the issue here: http://www.androidauthority.com/galaxy-s4-sales-222648/ Several other posts followed, including one this Monday discussing the reasons behind the slowdown: http://www.androidauthority.com/why-galaxy-s4-sales-237524/

      About the negativity in this post – HTC’s financial results were a mixed bag. Some may see the positive aspects, others the negative. I made it clear that HTC had good revenue and increased profit. The “negative” part was based on the missed forecasts of analysts cited by Reuters, and on my own understanding of the situation.

      I have no interest whatsoever in bashing HTC or promoting Samsung or any other manufacturer. I think that if you look through my posts you’ll see that.

      • Mike Bastable

        bogdan,
        I should have guessed you would reply, thank you for the courtesy, appreciated.
        I followed your advice and read your post, indeed little bias to detect there, however I will stand by my point, and that being seen from posters on this site, that certain writers are definitely below par on impartiality and unprovoked Apple bashing just to create a headline.
        Maybe it would have been better to post the same in article first, in the order of reported results,as other blogs/news sites have done…to avoid any appearance of Samsung favouritism.?
        Android Authority was always first stop for impartial Android news, even getting up there with Engadget and friends in terms of the quality of reporting. However that quality has disappeared, if you would do,as i have done, a short visit to your own site over the last 3 months you will see writers promoting Samsung, Inciting fanboy hate and some shabby fact checking and rumor mongering that should have no place on this site.

        Thanks for the reply, always appreciated.

        • http://AndroidAuthority.com/ Bogdan Petrovan

          The Samsung post was longer and more in-depth, so it took longer. It was just happenstance that we published it after the HTC one.
          Let me assure you that no one in our team has interest in promoting Samsung, We also have a policy against promoting hate and fanboyism.

          • Mike Bastable

            Really? Check some of the headlines on articles

    • ervin

      lol, how much HTC paid you, mister ?
      :D

      @Bogdan
      don’t bother him, you do just fine :)

      • Mike Bastable

        silly silly silly boy

  • dandroid13

    Best news of the week! HTC is going to disappear soon! :D

  • Robert Crosby

    if this was youtube we could just “flag for spam” mike bastable

    • Mike Bastable

      opinion and discussion is spam Robert? for someone with 8 comments you have a hell of an attitude, comments are there to provoke discussion, some of the discussions are great and frequent posters will often come back on their opinions if their peers have good arguments. THAT is the point of comments……