A Bleak Estimate Of Q1 2014 Has Got HTC To Focus On Low-Priced Phones

Posted on Jan 23, 2014
By Gaurav Aidasani

 As we look at the Q4 reports that HTC released in 2013, the figures are not that great. Moreover, the company does not expect a lot of growth in the Q1 of 2014.

The Taiwanese smartphone maker showcased a revenue of NT$42. 9 billion, i.e. $1.4 billion USD approx. Well, it is a whopping 28% decline from its Q4 of 2012 in which the company posted a revenue of NT$60 million i.e.  about $2 billion USD. The Taipei based mobile maker had net profit of a meager NT$0. 31 billion (about $10 billion) for the quarter. The company’s gross margin was 17.8%. However, its operating margin was negative 3.7%.

The company is expecting more decline in the Q1 of 2014 somewhere between NT$34 billion ($1.12 billion) and NT$36 billion ($1.18 billion). This is their third consecutive quarter when HTC is facing losses.

The company is known for its Android smartphones. It added a variety of new phones to its mid range Desire segment and a champagne gold edition of HTC One in select markets.

It seems that the company is reworking on its strategies so as to recover from the losses spread over a year of declining revenue, supply chain issues and departure of quite a few important executives.  According to what CEO Cher Wang has informed, HTC will be selling more products priced between $150 to $300. This will also include a new flagship phone. This phone is expected to compete with other companies like Xiaomi and Samsung.