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The HTC10 has its work cut out for it against 64% sales drop year over year
HTC has posted a final Q1, 2016 operating cost loss of $148 million with a 64% drop in sales year-over-year (representing an $80 million net loss after tax). This time last year, before the ill-fated HTC One M9 turned everything sour, HTCstill managed to break even, based on the relative success of other devices in its line up. But the company’s most recent earnings represents its fourth quarterly loss in a row. The HTC 10 may be a great phone, but it definitely has its work cut out for it in the year to come.
It’s common knowledge that HTC has been having a tough time of late. With Chairwoman and CEO Cher Wang stating that VR is more important to the company than smartphones, it should come as no surprise that a lot more effort is being put into the HTC Vive than into the flailing smartphone division. But despite this shift of focus, the HTC10 marks a return to some of HTC’s strengths – like bold design and slick software – and updates one of its long-time weak points: the camera.
Just as the HTCOne M9 contributed to HTC’s four consecutive quarters of losses, the HTC10 will, with any luck, reverse that trend and deliver solid revenue for the remainder of the year (note that HTC10 sales are not included in this quarter’s earnings). The HTCVive, which is also not included in the Q1 figures, has also seen tremendous support and is sure to boost HTC’s profitability for the foreseeable future.
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Unless something goes terribly wrong, these two devices will see HTC’s Q2, 2016 earnings posting a solid profit, but will they be enough to carry HTCthrough the rest of the year and turn its fortunes around generally? Will the rumored double-Nexus manage to win back skeptical Android fans and can HTCimprove on the few issues it still needs to address to stand a real chance at clawing its way back to a semblance of its former self? Only time will tell, but we certainly hope so.
What do you think of HTC? Do you think it will fight its way back?