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HTC Reports Q3 Loss

By Oonagh Reidy | Wednesday | 06/11/2013

HTC reports NT$3bn net loss for Q3 but CEO insists its making "good progress" in clawing back marketshare

Troubled mobile company posted third quarter revenue of NT$47 billion. October sales fell 12% year on year to NT14,9 bn.  

However, it is still in the red posting a net loss of NT$3 billion, as it continues to battle rivals titans Samsung, Apple and an army of Android phones. Operating margin fell to -7.4%.

"We have delivered good progress in the third quarter," said Peter Chou, HTC CEO insisted, "with the introduction of HTC One Mini and One Max, we now have an HTC One for everyone."

However, last months sales showed HTC's ongoing revenue decline is continuing. September saw sales fall 38% to NT18.51 bn. 


HTC fourth quarter outlook indicates sales will fall between NT$40 billion - NT$45 billion. The company also pledged to cut costs by 24% in the next quarter. 

Q4 Gross profit margin is expected to be 20% +/-1%. EPS is expected to be in the range of NT$0.1 to NT$1.7.  

HTC said it saw sustained momentum in the EMEA region, while maintaining the number one share in Taiwan. Its devices are now available across all four major US carriers in the US and in China, following the launch of HTC One by Verizon. 

The HTC One max is expected to be market's first wave of TD-LTE products, as well as launching new mid-range Desire 601 and an entry-level Desire 300 during the quarter. 

The company also says its 'Change' ad campaign with Robert Downey Jr. significantly ramped up consumer engagement, increasing brand awareness. 

"We have also launched the Here's To Change global brand campaign, affirming our role as the change-maker challenging the status quo since the dawn of the mobile phone industry, as well as our mission of continuing to bring change into the hands of people around the world."

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