HTC sales slowing, profitability hinges on the new One (M8)

by: Robert TriggsApril 7, 2014

htc one m8 outdoors (10 of 17)

Cast your mind back to last year, and the launch of the original HTC One (M7), and you may recall that HTC’s financial forecasts were looking a little shaky. Several important company figures resigned over the situation, including the Chief Operating Officer Matthew Costello. Since then, things have been a little steadier over at HTC, but the company still hasn’t seen a return to its prime.

The company’s sales slowed again ahead of the launch of the new HTC One (M8), which resulted in the company posting its second loss in three quarters. The company’s Q1 2014 loss amounted to NT$1.88 billion ($62 million), which is slightly worse than many analysts’ expected average loss of NT$1.71 billion, and right in the middle of HTC’s own February 10th forecast loss of between NT$860 million to NT$3.11 billion. Even more worryingly, revenue for the quarter fell to NT$33.1 billion, down from NT$42.8 billion over the same period last year.

“The company expects to see positive trajectory of its revenue in April from March and forecasts quarter-on-quarter revenue growth in the second quarter,” HTC

On the plus side, HTC’s March sales figures grew by 2.2 percent over the previous year, and HTC is predicting a return to profit next quarter, based on sales from its newly launched HTC One (M8). However, an analysts at SinoPac Financial Holdings Co. has suggested that, despite the positive figures for March, HTC’s sales are weaker than the company anticipated.

HTC Stock Price

HTC’s stock value has taken a battering over recent years, with new devices doing very little to calm investor nerves.

Considering that HTC has just released a range of new products, the next quarter’s earnings report is going to be a crucial one for the company. HTC will be holding its next earnings call in early May, where sales of the new flagship HTC One (M8), as well as mid-range products like the Desire 816, will be a deciding factor in determining whether HTC is capable of turning its fortunes around.

If all this seems familiar, we were saying virtually the same thing with last year’s launch of the original HTC One (M7), which turned out not to change that much for the company.

“The important thing to watch will be whether they can sustain sales into the third month after M8’s product release,” Birdy Lu

Despite a strong line-up of handsets, HTC still appears to be struggling to carve out a large enough market for itself to compete with the likes of Samsung. What do you makes of HTC’s odds of turning things around with its new line-up of handsets?

  • TechGuy

    They don’t help themselves by restricting the M8 developer version to North America and making the 32GB M8 almost impossible to get here in Europe. And why no 64 GB model?

    • lyrinix

      Because you can get a 128GB microSD card? How much storage do you need on your phone?!

      • TechGuy

        You obviously don’t know about the frustrations of using sdcards with the latest versions of Kitkat which severely limit the previous usefulness of external storage,

  • MasterMuffin

    M8 is a great phone and I’ve noticed some ads already (UEFA Champions League field borders). Still nobody I know (other than the nerds) knows this phone exists, and I bet that’s the situation in many places. Sad really

  • Rijoenpial

    They cannot compete with Samsung, period… They better just focus on surviving… A more realistic plan from David… Goliath is too big… Cheers

  • Shark Bait

    If only they had more ultrapixels ……

    • Sean Karpa

      I agree.

  • محمد ریاض

    When new HTC M8 will be launched /available in Pakistan and at what price….anxiously waiting…

  • dandroid13

    LOL, HTC, you’re done, and won’t be missed.

    • Sean Karpa

      I for one, as a mostly iPhone user, trying an M8 now, hope HTC makes it. We need more than a Samsung vs Apple world.
      I for one, have a Samsung note 10.1 2014 tablet and it is OK at best. Will certainly never buy another samsung android device. Much more enjoyable experience on the HTC One. The Note 10.1 2014 feels slower than my iPad 2 on iOS 7, it is more buggy and rather not worth 450 I paid for it. Lesson learned. Thats just my opinion though, mileage may vary as they say but Samsung’s bloatware is not for me. I always wondered why everyone cared about 3-4GB of ram but once I saw that 3 apps just about used all of the 3GB in the Note 10.1 2014,
      I understood. Apple can just do a lot better with less. HTC seems to be going the same route, I hope they can pull it off. The HTC One M8 is the first Android phone I have bought and if HTC goes under, it will be the last. Apple and HTC (so far) just work well for me.

  • tn7871

    I’ll never buy an HTC phone again. They don’t maintain them with updates. I have a Droid DNA that’s fully capable of KitKat, but no update in site. I’m not going to buy something unless I’m sure that it won’t be obsolete in 6 months. Samsung will be my next choice.

  • TimothyTShatzer

    They don’t maintain them with updates. I have a Droid DNA that’s fully capable of KitKat, but no update in site. I’m not going to buy something unless I’m sure that it won’t be obsolete in 6 months. Samsung will be my next choice.

  • BenChapman

    Tbh, nobody really cares about HTC.

  • Tommy

    The new HTC One is a very, very nice phone. It has even better hardware than last year’s model, and a few new smart and well-chosen software tricks. Some of the new software are mere gimmicks, but in the time I spent testing it, I came away more pleased then puzzled. And if you have decided to become a proud owner of this device, perhaps you’re in the market for a solid and beautiful protection case as well.