HTC’s Q4 2014 Financial Results Are In; The Company Turned Profit, But Barely

February 6, 2015 - Written By Kristijan Lucic

We all know that HTC is doing all that well in the profit department for quite some time now. This Taiwan-based company had to cut costs last year and by doing that bring its business back to profitability. Their profits weren’t all that significant though, and everyone knows that HTC needs to sell more smartphones in order to turn a more significant profit margin and join the heavyweight smartphone manufacturers out there. Well, the company has just released their financial report for the fourth quarter last year, let’s see how they did.

Let’s start with the company’s revenue, HTC’s revenue for Q4 2014 was $1.524 billion (NT$47.9 billion), which is an improvement compared to a year before, HTC’s revenue was $224 million higher than a year before. Net profit for the fourth quarter last year was $15.9 million, the gross margin was 20.4% and the operating margin 0.4%. In case you don’t see it for yourself, these are not exactly great results for HTC, they’re barely making profit and really need to do something in order to raise their revenue (and profits) in 2015. The company didn’t release any individual smartphone shipment information though, which is a shame, but I’m sure that the One (M8) did really well for the company despite the fact it was launched in Q1 2014.

HTC is hoping to make a significant impact on non-smartphone markets in 2015 as well, as you all know, they launched the RE Camera action cam device last year and we can expect some fitness products from HTC in the near future. Hopefully, that will help them to raise revenue and profits this year. HTC is expecting their revenue to be between $1.32 and $1.43 billion (NT$41.5 and NT$45 billion). The company also plans to focus on the entry-level markets in 2015, which could help with profits significantly if they price their handsets accordingly, HTC has a nasty habit of pricing their handset way to high in the lower segments. We’ll see, I’m really rooting for this Taiwanese smartphone manufacturer and I do hope that they’ll have a great 2015. As a side note, the company will launch their 2015 flagship, the One (M9), on March 1st as part of MWC in Barcelona, so stay tuned for that.