HTC has been trudging along when it comes to finances. In Q1, 2013 they had a pretty big revenue bust thanks to delays in HTC One production. Because of the issues, they were only able to bring in a net income of $2.8 million. For a company like HTC, that’s an extremely low number.
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It looks like they’ve picked up the slack this quarter, likely thanks to the increase in success of the HTC One. In Q2, 2013 HTC managed to bring in a net profit of $41.63 million.
The increase in profit is most likely thanks to the boost in production for the HTC One, which has also seen quite a high demand by consumers.
Total revenue for the company increased to $2.4 billion which is both good and bad. It’s good because it’s an increase of 33% year-on-year revenue compared to numbers from last quarter. However, it’s bad because it’s also a 20% decrease when compared to numbers from the same quarter last year.
Analysts claim that HTC’s profits won’t be going anywhere for Q3 (July-September) because sales are expected to remain relatively flat and the company has no new products launching anytime soon. In fact, the next product from the company which is the HTC One Mini, will be responsible for any future profits they might make.
June sales for the HTC One have showed a slowdown in demand for the device, which is an issue because it’s really one of the only flagship handsets the company has on the market currently.
Michael Shieh, an analyst from Goldman Sacks said the following as reported by Reuters:
“The big drop on June sales likely proves the HTC One sales momentum slowdown and 3Q may be only flattish as is the market expectation.”
To reiterate, market analysts are predicting doom and gloom for the company, like they so often love to do.
Straying from the predictions market analysts have made, it looks like HTC is improving both revenue and income thanks to their beautiful HTC One device. Hopefully, they can get out the HTC One Mini in a timely manner and bring those profits soaring even higher.
Can I just throw a plug in here that I dislike market analysts, bigtime?