Poor Q2 Performance Lands HTC Back Into Financial Woes

Android / Business / Mobile / Tech
HTC CEO Cher Wang

HTC haters and detractors had a lot to celebrate today as HTC posted their highly disappointing Second Quarter financial results. After briefly returning to slim profitability in 2014, HTC posted a loss of  NT$5.14 billion ($166M) on unaudited revenue of NT$33.01 billion ($1.07BN) for the quarter ending June 30, 2015. A loss during any quarter is troublesome, but in this case it’s outright alarming since this was supposed to be the good period for HTC. Initial sales of the HTC One M9 flagship were included in this report. Sales that HTC was betting on helping the ailing Taiwanese OEM. Instead, the M9 was met with much indifference due to a lack of major redesigns, new features or additional value adds. Although there are no official numbers, reports claim that sales of M9 are down 43% from the previous M8 model.

HTC’s other bets on mid and low-tier handsets have also yielded low sales as other OEMs in this space have proven they can deliver quality devices for unexpectedly low prices.  Beyond that, HTC has yet to successfully diversify their portfolio as planned with their “Re” line of products. Their fantastic Re Camera has not found a huge audience and the announced Re Grip fitness band and Re Vive VR Headset have yet to hit shelves, and more importantly, consumer’s hands.

It should be noted that HTC is in the middle of major restructuring and it has only been a few months since Cher Wang replaced long-time CEO Peter Chou. Wang has made bold claims about changes within the company and refocusing their strategy. However little of what HTC has been showing lately has attracted any real interest. In fact the loudest story online regarding HTC this year, was a supposedly false report about a possible buy-out by ASUS. All of this bodes poorly for HTC and 2015 is going to be a very difficult climb for a company that was once dominating with hardware across the board.

Are you surprised by HTC’s hardships? How do you think HTC can fix their troubles?

  Source: HTC  Via: TechCrunch

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