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Wednesday, October 16, 2013

HTC records the first ever quarterly loss

HTC has reported its first quarterly loss ever in its financial reports for the three months ending in September 2013.

Posting a net loss of 2.7 billion Taiwan dollars (£ 62 million), HTC has slipped into the red for the first time, despite the launch of flagship smartphone HTC One.

Struggling to compete with the likes of Apple and Samsung, the Taiwanese maker of smartphones has seen sales heavily influenced by supply chain issues and internal turmoil.

The company has also published a 3.5 billion Taiwan dollar (£ 74 million) operating loss, a figure of recording sales a third less for the same period last year.

HTC may follow in the footsteps of BlackBerry and Nokia, looking for a larger company to buy out the ailing manufacturer and assist in future.

However, the HTC was adamant that a sale is not an option, despite analysts suggesting that the prospects for the future is pretty bleak.

"Basically there are a lot of things that need to be corrected," said Laura Chen at BNP Paribas. "[Is] no sign of recovery any time soon."

Analysts suggest HTC must face his suppoly marketing, management and streamlining its product line.

Although the HTC CEO Peter Chou is not accepting any interviews, HTC has offered this statement to Reuters:

"HTC and broad-based employee remain committed to leadership of Peter Chou. The family of products (Flagship) HTC One – that has met the media and consumer awards – was the result of the vision and leadership of Pete and speaks for itself. "

The HTC One was released in February with great critical success thanks to its aluminium design, improved HTC Sense UI and technology UltraPixel camera.

HTC has since released the HTC mini One as an alternative to the top model by 4.3 inches.

Next, read our choice of the best mobile phones of 2013.


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