HTC has posted its financial numbers for the last quarter of 2013, and the struggling smartphone vendor has suffered another drop in sales.
HTC was once a massive Android name and had a major hit with its Desire handset, but has floundered since those glory days, despite producing some highly acclaimed high-end phones.
The Verge reports that Q4 revenue was NT$42.9 billion (around £860 million), compared to the final quarter of 2012 which saw NT$60 billion (£1.2 billion) flowing into HTC’s coffers. That’s a major drop of 28 per cent year-on-year, with net profit only coming in at around £6 million for Q4 2013.
That’s bad news, and there’s worse, too, with the company forecasting a bigger revenue drop – and a profit loss – for the first quarter of 2014.
So what’s HTC going to do about this? The firm intends to focus less on high-end handsets like the HTC One, in order to make a bigger push for mid-range and cheaper models.
Peter Chou, HTC’s CEO, said: “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.”
The latter part of that statement perhaps means that some more marketing and ad spend is being set aside, as HTC has been slipping somewhat in that regard lately. But dwindling profits don’t exactly make a great recipe for increased marketing spend…
It’s a shame to see things going pear-shaped for HTC, as the One is a great handset (our phone expert loved it), and we certainly need all the heavyweight Android phone manufacturers we can get to keep Samsung honest.
Of course, there will be another high-end model coming out in the form of the HTC One’s successor known as the M8, which is due to launch next month.
At any rate, let’s hope the future focus on more wallet-friendly handsets pays off, but for the moment, the outlook is pretty gloomy.Leave a comment on this article