Analyst: HTC One is HTC’s Savior – Expect Profits To Grow 50% in Q2

April 15, 2013 - Written By Alexander Maxham

The HTC One is, what most thought, to be HTC’s last phone under Peter Chou. Since the current head of HTC said he would resign if this didn’t bring the company out of the red. The HTC One has already suffered a few set backs. One  being delayed due to the 4 ultrapixel camera in the device, and it’s also not coming to “every” carrier in the US. We say “every” because it’s confirmed for AT&T, Sprint and T-Mobile but there is still no confirmation of it coming to Verizon. Although we’ve heard rumbles that it might be heading there.

The supply issues are now cleared out, and the HTC One will be launching this week on at least Sprint and AT&T. There’s no official date for T-Mobile yet. J.P. Morgan Securities has decided to upgrade HTC’s stock from “underweight” to “neutral”. In addition, the stock has nearly doubled the target price for HTC stock NT$330 which is around $11 from NT$160 on the back of the HTC One.

Here’s what Alvin Kwock, an analyst at J.P. Morgan said in a note to their clients:

“We have previously said that the new ‘One’ is HTC’s last chance for a turnaround — we now think HTC has done enough to at least see a mini-turnaround,”

Supply is now “significantly improved in the last two weeks” and HTC is expecting to see a huge bounce-back in revenue in Q2. We’re actually hearing that their profits should increase by about 50% in the second quarter. Which is always great news for HTC, but will it happen? I really hope so. I’d love to see HTC bounce-back big time and be another contender to compete with Samsung. It’s not that I have a problem with Samsung, but having one manufacturer take such a big part of the market share isn’t good for consumers. Innovation will take a dive, which is definitely something we don’t want.

How many of you are planning on picking up the HTC One when it’s finally available? Let us know in the comments below.

Source: Focus Taiwan