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HTC’s First Quarterly Report Of 2015 Shows A Successful First Period, But Forecasts Less Growth For Q2

April 29, 2015 - Written By Ricardo Trevizo

HTC has just on Tuesday published the first quarterly forecast of the year, and according to the report, HTC has seen a considerable improvement over last year’s same period. This comes mainly due to the launch of the company’s newest flagship device, the HTC One M9, that even if it wasn’t the game-changing phone almost everyone expected it to be, has brought an increase in sales over last year; HTC also attributes its growth in revenue to “tailored portfolios for individual markets and targeted marketing efforts”. The Taiwan-based company reported that their total revenue increased by a quarter over last year’s same period, which is a substantial amount. But HTC is as hopeful for the second quarter as the company reported that forecasts for said period came lower than expected. The HTC One M9 is a great device without a doubt, but according to HTC its launch back in March won’t be enough to bring projected revenues to a satisfactory level.

The HTC One M9 was launched back in March, and the HTC One M9+ was announced earlier this month and with that the company’s first quarter’s revenue was considered rather successful. HTC’s net profit for the first quarter of 2015 is $11.8 million, accounting to $1.36 billion of revenue. HTC also signed new partnerships with major companies like Under Armour (for fitness products) and Valve (for the new virtual reality headset, Vive), which have also contributed to these satisfactory numbers.

This year’s April-June period will be a tough one for HTC, as the company expects a revenue around $1.5 billion and $1.6 billion. This might sound as a large sum, but actually it would mark a quarterly growth of 10.8% to 22.9%, whereas analysts predicted a 50% growth. HTC’s gross profit will increase 19.7% over the previous quarter. As of revenue, HTC is anticipating a range from $1.5 billion to $1.67 billion. These numbers were expected by analysts to be almost twice of what HTC is forecasting, meaning that HTC has not a lot of hope for the new devices that have been recently launched nor the partnerships with both Under Armour and Valve. The second quarter of 2015 will mark whether the HTC One M9 and HTC One M9+ will be positively adopted by customers or not; The sales of both devices will most likely be the key to HTC’s predictions, but if not even the company has much hope for its new flagship device, you cannot be too hopeful for a successful second quarter.