Manufacturer Discussion : HTC : HTC returns to the black in Q2, thanks to the HTC One (M8)
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> HTC returns to the black in Q2, thanks to the HTC One (M8)
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"After reporting operating losses for the last three quarters, HTC finally returned to the black for the second quarter, thanks to the well received HTC One (M8). For the three month period ended on June 30th, the manufacturer reported a profit of $75.5 million. That is an 80% increase from the results reported a year ago by HTC. In the previous quarter of 2014, the company reported a loss of $62.8 million.
The turnaround is led by the HTC One (M8), the company's current flagship Android flavored handset. Taking the same award winning design it used for the HTC One (M7) in 2013, HTC expanded the size of the screen to 5 inches for the HTC One (M8), and added the much requested microSD slot. And instead of settling for the Snapdragon 600 processor, HTC opted for the Snapdragon 801 CPU. On the back, the Duo camera set up allows HTC One (M8) users to change the focal point of a photograph, even after it has been processed. While the 2600mAh battery doesn't offer the capacity seen on the cells used by the competition, HTC has done a good job of optimizing the battery so that users can get a full day of usage without having to recharge the phone.
Despite turning a profit in the quarter, some analysts are concerned that the HTC One (M8) is going to run out of steam once the rumored Samsung Galaxy F is released, and the Apple iPhone 6 is launched.
Growth for someone like an HTC is going to be really difficult in this extremely competitive environment. Things are only going to heat up with the iPhone 6 making it more difficult for HTC to grow market share."-Hugues J. De La Vergne, prinicipal analyst, Gartner
Also helping HTC's fortunes in the quarter was the release of the entry-level HTC Desire 816, designed for emerging markets. And the company also reduced its marketing, something that Chief Financial Officer Chialin Chang had forecast in May."
PhoneArena
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Posted: 2014-07-04 00:22:09
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^ this is why the source of information is critical.
Sales where not the factor ...
One M8, released in March as the company’s main product for the year, helped drive the largest monthly revenue growth since 2011 for April before declining again in May and June as competition from rivals such as Xiaomi Corp. intensifies. Earnings would return to profit for the June quarter with sales improving throughout this year, Chief Financial Officer Chang Chialin told investors in a May 6 conference call.
“We believe that 2Q14 might be the sales peak in 2014,” Robert Cheng, an analyst at Bank of America Merrill Lynch in Taipei wrote in a report after the earnings. “HTC One M8 might have generated good performance since its launch, but given the short product cycle, HTC needs to have more models.”
Sales for the quarter fell 8 percent to NT$65.1 billion, at the lower end of HTC’s own forecast for NT$65 billion to NT$70 billion. While that missed analyst estimates for NT$66.9 billion, the decline was the smallest since the last quarter of 2011.
HTC is cutting operating expenses by reducing marketing costs, Chang said in May. The company had forecast operating expenses of NT$11.7 billion to NT$12.2 billion for the quarter, compared with NT$15.3 billion a year earlier, and didn’t provide a figure in its announcement yesterday
Source:
Bloomberg
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Posted: 2014-07-04 06:41:05
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