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PHONES / INDUSTRY

HTC Predicts Larger Losses

By Oonagh Reidy | Tuesday | 11/02/2014

Bad to worse for original Android phone

The mobile giant, HTC, posted revenue of NT$42.9 billion (A$1.57bn) and net profit of NT$0.31 bn, for final quarter Oct-Dec (Q4 2013).

Gross margin was 17.8 percent, the company said.
 
HTC outlook for Q1 fiscal 2014 appears to predict a worse first quarter again, forecasting a loss of between -NT$2.6 - NT$2.1 per share, a drop from Q4's earnings per share of NT$0.38. 

Forecasts indicate HTC sales will slump from previous quarter to NT$34 bn (A$1.24bn) - NT$36 bn. 

January sales alone slumped 38% to NT$9.67bn. 

However, this quarter's gross margin is expected to be higher at 21.75% +/- 0.25%.

"We will continue to stay focused on making the best smartphone and building a compelling mid-range portfolio. Meanwhile, we are going to communicate better with consumers," said Peter Chou, HTC's CEO. 

In China, the company entered into a strategic partnership with China Mobile and launched HTC One Max as the first TD-LTE device in the worlds biggest mobile market. HTC has also appointed Robert Downey Junior to lead its ad campaign. 

The Taiwanese mobile maker, who produced the first Android phone, has pledged to develop wearable devices this year.

"We feel positive and optimistic about 2014 when compared to 2013," head of global sales, Chang Chialin, said last week. 


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