HTC's Q2 earnings rebounds on flagship phone

The company's second quarter net profit was up 80.8 per cent

HTC posted a year-over-year gain in net profit for the second quarter, following the release of the company's latest flagship phone, and new low-end handsets coming to China.

During the period, HTC's net profit reached $NT2.26 billion ($US75.6 million), up 80.8 per cent from a year earlier. The company's quarterly revenue, however, barely met HTC's outlook for the period, and reached $NT65.06 billion, down 8 per cent year-on-year.

The company's latest flagship phone, the HTC One M8 went on sale in late March, with a wider global roll out in April. The phone has been performing well, outselling last year's model, the company's CFO said in May.

It's a positive sign for a company that's been facing fierce competition from Apple and Samsung Electronics. Once the biggest Android smartphone vendor in the US, HTC's market share and earnings have both taken a dive. HTC reported a net loss of $NT1.88 billion in the first quarter, and posted another loss of $NT3 billion in last year's third quarter.

To correct course, the Taiwanese company has been ramping up its marketing, hiring celebrities Robert Downey Jr. and Gary Oldman to star in its advertisements. It has also embarked on cutting down production costs, and introducing a range of lower-end phones to regain market share.

Some of those phones have been built for the neighboring Chinese market. In October, the company said it wanted China to become like its "home market."

But even with the recent rebound in profit, HTC's earnings are still far below what they were two years ago. Back then, the company reported $NT7.9 billion in net profit for 2012's second quarter. Doubts also remain about whether the company can mount a sustained comeback. Phones from Apple and Samsung continue to lead the market, and rising vendors from China, including Huawei Technologies, Lenovo and Xiaomi are working to expand globally.

Tags business issueshtcconsumer electronicsAndroidsmartphonesinvestments

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?