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HTC’s Profits for Q1 Fall 98%; Making Just $2.85 Million Despite Launch of the One

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It looks lie HTC is still struggling after reading the company posting their Q1 Results they arent looking great. Year-on-year the company’s profits have fallen 98%. Net profit has fallen to just NT$85 Million ($2.85 Million) from last year’s NT$4.5 Billion ($152 Million). That’s a sharp decrease and one that HTC might not be able to live through for another quarter. Revenue has also taken a hit as well, falling from NT$67.8 billion ($2.3 billion), to just NT$42.8 billion ($1.45 billion).

On the call, Peter Chou, CEO of the Taiwanese Company had the following to say:

“Last year we thought we needed to inject some new excitement in HTC’s products, and there was an opportunity for us… because everybody looks the same, I think that we have successfully launched the HTC One. We believe people are really getting our concept.Our goal is really to develop the HTC brand as a trustable, premier and excellent smartphone brand. That kind of brand awareness and preference is so important to us, as different suppliers are coming from everywhere and there’s no differentiation,”

There’s no denying that the One is a very good looking phone compared to others witha build quality far superior than many devices on the market today as it’s got a unique design and some brilliant features you won’t see elsewhere. This is all fine and well but, it’s clearly not enough to turn the company’s fortunes around. The delays in launching the device will not have helped either, with the device launching too close to the S4, and with supply and demand issues it was a struggle for HTC all round. As well as recieving the worst “FixIT” rating coming in at a 1 out of 10 for repairability. Well known Tear-Down website iFixIT couldn’t even opening it without breaking some components. This little beauty really isn’t made to be opened.

Something to consider would be HTC trying their hands at getting into the tablet market again. The Flyer was not necessarily well received but, at the time it was one of the better 7-inch tablets on the market and was praised for its solid design and durability. Perhaps HTC could make a name for themselves with a budget-orientated Android tablet with a quality look and feel, with a build quality rivaling the One.

Analysts have been downgrading their expectations for HTC all the time and while the One has been well-received among them, it doesn’t look as though its going to be their saviour device. Lets all hope that HTC can pull through and pull something out of the bag.

[Source: CNet]