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HTC's (One) Last Chance Saloon

By Oonagh Reidy | Friday | 03/05/2013

One of our worst: HTC revenue landslide plunges further

The first company to run a phone on Android OS, posted Q1 revenue of NT$42.8 bn ($1.4m), a fall from $NT60m last quarter, and NT$67.8bn the same time a year ago. 

Net profit was down almost 100% to NT$85 million and earnings per share NT$.10  - marking one of the worst quarters on record for the Taiwanese phone maker. Operating margin was a woeful 0.1%. 

Compared rivals to technology giants Apple, who recently announced net profit of $11.6 billion or Samsung jumped 42% to $6.4 billion, HTC who makes mainly phones like One X, XL, and tablets is in danger getting gobbled up by the big boys.

It was once among the elite top 5 smartphone (and Android) makers, until Samsung Galaxy's came to town. 

Last year, it was No. 2 Android maker in Australia. 

Peter Chou, CEO said "this was a pivotal quarter for HTC," as he looks to spruik the One, which everyone agrees is a great smartphone. 

Chou previously pledged to step down if the new One smartphone recently launched and heavily promoted by all the big telcos, did not do well. 

At an investor conference yesterday, Chou pledge to up his company's marketing spend to push the One into the hearts and minds of consumers, noting the change in the phone market trends from just devices to "franchise brands", reports Bloomberg.   

"The market changed, and it was a little unexpected," he admitted. 

But it may not be enough as it battle big names like iPhone and Apple for the hungry mobile consume, who have enormous marketing kittys and brand power.

Recent figures from analysts IDC show HTC is not even in the top 5 smartphone brands anymore as companies like LG and ZTE make headway, so has less than 4.1% marketshare.

"In February our teams set a new standard for smartphones, launching the new HTC One. 

"The reviews of fans and critics alike have been overwhelmingly positive and we look forward to delivering on the promise of this device." 

He also listed off the "prestigious awards" the One has received including the GSMA's "The Best Mobile Handset, Device, or Tablet," Tech Radar's "MWC's Best Phone" and "Best in Show". 

The Windows Phone 8X by HTC was also honored with the prestigious "red dot award: product design 2013" award. 

The HTC One was also well received by mobile operators and consumers  in markets around the world, he added. 

HTC expects a better second quarter with revenue around NT$70 billion and operating margin to pick up to 1-3% 

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