HTC One Delay Forces Company Into Worst Ever Earnings Report

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The impact of a delay with the HTC One is now showing itself as the company reported its lowest quarterly profit ever causing the company to yet again miss revenue targets. HTC’s first-quarter net income plummeted 98%, which marks the sixth-straight quarterly decline. The company’s quarterly earnings totaled a mere $2.8 million on $1.4 billion in sales. HTC lost its momentum beginning in February as a camera component shortage forced the company to delay the launch in some markets by as much as a month.

The prospects for a quick turnaround will be limited as HTC launches the One in the rest of the markets worldwide, including the ever important US market around the same time as the Galaxy S 4. Analysts had hoped that HTC would post profits somewhere around $20 million, which isn’t by any means a great number but far better than the $2.8 million result. The end of March saw HTC release the One in just three countries, instead of the 80 countries HTC had planned which marks yet another difficult high-profile launch for HTC. However, there is some good news.

With the introduction of the HTC First with Facebook Home and the rollout of the HTC One in the US, HTC is presented with an opportunity to boost some revenue. Still, even with those two high-profile launches, the introduction of the Galaxy S 4 presents HTC with a huge wall to climb in order to gain not only market-share but mind-share as it battles against Samsung’s seemingly endless marketing spending.

If we don’t see second-quarter results climb higher when they are presented in July, the question of where HTC goes from there seems like anything but a sure thing.

Bloomberg

 

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