HTC confirms loss-making quarter

HTC confirms loss-making quarter

05 OCT 2015

As expected, HTC made a loss in the third quarter of 2015, as the company struggled for sales on the back of tough competition in the smartphone market.

It reported a loss for the period of TWD4.48 billion ($137.84 million), compared with a slim TWD0.64 billion profit in Q3 2014, on revenue of TWD21.40 billion, down from TWD41.86 billion.

HTC had already revealed it was heading for a Q3 loss, after which it announced a wide-ranging cost cutting plan designed to reduce operating expenditure by more than a third.

This is also likely to entail staffing cuts of around 15 per cent, as it looks to adopt a “more agile operating model”.

The company’s monthly sales across the Q3 period have been especially weak, with its sales down significantly year-on-year across the board. It did see a slight improvement from August into September (3.12 per cent), although this is unlikely to see the champagne corks popping in Taoyuan City.

As it has struggled, HTC has played-down talks that it is set to take-on an outside partner, stating that despite reports it had no plans to merge with Asus, and that there was no truth in claims Chinese internet company Qihoo 360 was set to take a stake.

HTC is expected to unveil a new device later this month, ahead of the traditionally lucrative Q4 holiday sales period.

It has previously stated the need for a fresh “hero” product to spearhead its sales effort in the second half of the year.

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Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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