HTC’s Profits for Q1 Fall 98%; Company Makes Just $2.85 Million Despite Launch of the One

May 2, 2013 - Written By Tom Dawson

It looks lie HTC is still having trouble these days, with the company posting their Q1 Results that don’t make for good reading. Year-on-year the company’s profits have fallen 98%. Net profit has fallen to just NT$85 Million (2.85 Million) from last year’s NT$4.5 Billion ($152 Million). That’s a sharp decrease and one that HTC might not be able to survive for another quarter. Revenue has also taken a hit as well, falling from NT$67.8 billion ($2.3 billion), to just NT$42.8 billion ($1.45 billion).

On the call, Peter Chou, CEO of the Taiwanese Company had the following to say:

“Last year we thought we needed to inject some new excitement in HTC’s products, and there was an opportunity for us… because everybody looks the same, I think that we have successfully launched the HTC One. We believe people are really getting our concept.Our goal is really to develop the HTC brand as a trustable, premier and excellent smartphone brand. That kind of brand awareness and preference is so important to us, as different suppliers are coming from everywhere and there’s no differentiation,”

There’s no denying that the One is a very different looking phone compared to others, it’s got a unique design and some brilliant features you won’t see elsewhere. This is all fine and well but, it’s clearly not enough to turn the company’s fortunes around. The delays in launching the device will not have helped either, with the device coming too close to the Galaxy S 4 launch and limited supplied apparently struggling to keep up with demand.

Should HTC try their hand at getting into the tablet market again? The Flyer was not necessarily well received but, at the time it was one of the better 7-inch tablets on the market and was praised for its solid design and durability. Perhaps HTC could make a name for themselves with a budget-orientated Android tablet with a quality look and feel, akin to the One.

Analysts have been downgrading their expectations for HTC all the time and while the One has been well-received among them, it doesn’t look like the One has been available yet to make enough of a dent. Let’s hope that the Q2 results for this company look a little better than its Q1 results.

[Source: CNet]