One (M8) launch sales better than M7’s. HTC predicts profit for Q2

by: Bogdan PetrovanMay 6, 2014

HTC CEO Peter Chou (4) Credit: HTC

Don’t call it a comeback. HTC is hardly out of the woods, but the troubled Taiwanese company can finally give investors some reasons to buy its stock.

HTC issued its guidance for Q2 2014, and it’s largely good news. The company expects to double its revenue compared to last quarter, to between NT$65 billion (US$2.16 billion) and NT$70 billion (US$2.32 billion). That would translate to a gross margin of 21.3 percent to 22.0 percent, and earnings per share of NT$2.21 to NT$3.00.

Last quarter, HTC recorded a marked slowdown in sales, ahead of the release of the new One (M8), which resulted in losses of NT$1.88 billion ($62 million), worse than the predictions of many analysts.

For Q2, HTC is relying on strong sales of the One (M8) and the Desire 816, as well as good performance in the entry-level segment in markets such as China and India.

The One (M8) outperformed the sales of the M7 in the same period last year, said Jack Tong, President of HTC North Asia. The company says it had “solid” sales in Europe, Middle East, and Africa, thanks largely to the M8, as well as “strong momentum” in India and China. The M8 and the Desire 816 were HTC’s sales engines in these regions. In some Asian markets, demand for the One (M8) was greater than the supply, said Tong.

We believe that we are on course for a strong 2014

“We believe that we are on course for a strong 2014,” stated CEO Peter Chou, noting that the expansion of LTE in Taiwan and China opens opportunities for HTC. “We have dramatically improved our operational efficiency and supply chain readiness,” said the exec. HTC began outsourcing some of its manufacturing this quarter.

These signs are certainly encouraging, but HTC can’t relax just yet. In Q2 of last year, HTC had revenues of US$2.35 billion, so, unless the company beats its guidance, there won’t be any growth year on year.

Related: List of the best HTC One (M8) cases

  • Luka Mlinar

    They need to reform their company. Cut the dead weight and start investing into the future of the market. At the moment they got one good phone out. 816 is so plastic looking that when i see it i think that there’s a prize in it if i smash it. The HTC (M7) mini was the essence of ugly. It had low specs with a crazy huge price. I hate when manufacturers pick a design and then model all their phones around it. It’s not a car. The 8S was an awesome design, what happened?
    For every person that likes their UI there are 2 that don’t.
    One morning Peter Chou is gonna wake up and companys like OPPO and OnePlus will crush them. Just because they weren’t stubborn when it came to both the design and the UI. The future is coming, step up or GTFO.

  • jjordan

    I just don’t see it…I wish they would pull themselves out of the basement but with how strong the s5 is selling right now and the impending announcement of the g3. HTC is gonna stall out.

  • Mike Bastable

    I think that the G3 is going to give the competitors many sleepless nights…it looks awesome

    • Anonymousfella

      If it lives to the hype, it’ll be bad for Sony and HTC
      Samsung and Apple? I don’t think so. The next galaxy and iphone will sell more than the G3 for sure

      • Ben Edwards

        You’re right, but the tide won’t turn overnight. The G3 could easily start a trend away from Samsung if LG play their cards right. The G2 was a surprise hit, after all.

        • Anonymousfella

          True. But will Samsung stay quiet if the G3 is a hit? They have a pretty swift supply chain. They’ll probably have a similiar product likely s5 prime with all the stuff G3 will be offering, ready in 1-2 months and push it with all their marketing.
          Like how they managed to snatch the title of world’s first curved display phone with the Galaxy Round even the LG Flex was rumoured to be the first(if I remember correctly)

          • Ben Edwards

            Again, you’re right. One area Samsung excels in is bringing devices to market in a rush when they need to. The S5 Prime is quite likely a competitor for the G3 (will be interesting to see if they up the screen size at all) and knowing Samsung they will launch it as close as possible to the G3’s release to steal away attention and sales.

  • Tommy

    There are still a number of new devices incoming in the next few weeks and months, but we really like the HTC One M8. It’s classy, quick, and well-priced considering the feature set. 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.