HTC turns in another profitable quarter

HTC turns in another profitable quarter

03 OCT 2014

Troubled smartphone maker HTC reported another profitable quarter, as it managed to control its costs in the face of revenue pressure.

The company announced a profit of TWD640 million ($21 million) on revenue of TWD41.86 billion. This compares with a Q3 2013 loss of TWD3 billion, on revenue of TWD47 billion.

HTC also saw an increase in monthly sales in September from August, increasing 15 per cent to TWD16.72 billion, although it is still down year-on-year.

While HTC kicked-off 2014 with a loss, it returned to profit in Q2, noting that it was looking to end the first half of the year at breakeven to slightly positive, in order to give it a clean sheet for the second half of the year.

With the lucrative fourth quarter sales period still to come, the company certainly looks on track to keep in the black for the full year.

The vendor previously said that faced with a decline in revenue, HTC was adjusting its resources to “maintain a profitability without impacting on the overall brand equity investment and the demand generation”.

It has benefited from sales momentum around its One (M8), One Mini 2, and Desire 816, although these are now reaching maturity and HTC’s rivals are keeping up the pace of competition.

In recent weeks, HTC has announced several products intended to drive sales in the mid-range, including Desire 820 (powered by a 64-bit processor) and the “affordable” LTE-enabled Desire 510.

It also debuted a version of One (M8) powered by Windows Phone, and Butterfly 2 for Asian markets.

It has recently been reported that HTC axed development of a smartwatch, as it felt unable to differentiate its product in a market that is already the subject of fierce competition – against a backdrop of unproven market demand.

The company is also reportedly looking at a move into the camera market, with a device said to rival products from GoPro – although with GoPro set to introduce an entry-level product priced at $129, this space is also not a walk in the park.

HTC was also included on the list of new backers for Google’s Android One project, intended to enable the delivery of lower-cost smartphones for emerging markets.

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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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