New One M8 Could Finally Help HTC Turn A Profit
HTC today posted its second loss in three quarters in another dismal earnings report, but things are beginning to look up for the Taiwanese company. Its new One M8 smartphone helped increase sales in March, and HTC has projected a profit for next quarter.
HTC saw NT$33.1 billion ($1 billion) in revenue last quarter, which was lower than the company’s own forecast despite a 2.2% year-over-year sales increase in March. As a result, it suffered another operating loss of NT$1.88 billion ($62 million).
But following the launch of the One M8 late last month, HTC is finally beginning to see some positive changes. Its stock climbed 3.6% to close at NT$159.50, the highest it’s been since November 26, prior to its earnings announcement — and the company expects revenue growth.
“The company expects to see positive trajectory of its revenue in April from March and forecasts quarter-on-quarter revenue growth in the second quarter,” HTC said in its statement. Both net and operating income are expected to finally return a profit in the second quarter.
Given the devices HTC brought to market in 2013, it’s surprising to many that the company continues to struggle. The original HTC One was widely regarded as one of the finest Android-powered smartphones of the year, and it was followed up with the One mini and the One max.
HTC also launched a selection of midrange devices that included headline features like BoomSound and the UltraPixel camera. Unfortunately, the company’s pricing strategy is often the reason why some of these devices don’t sell as well as expected.