HTC who have mounted a major marketing campaign for their new HTC One (M8 smartphone in high traffic shopping centres in Australia is tipping a return to profit with sales of the new device doing “extremely well” according to local HTC management.
With mass retailers now selling the new smartphone HTC management believe that the traffic who pass through major shopping centres are “the right” target audience for the new device according to Ben Hodgson Country Manager for HTC.
A visit to major shopping centres such as Chadstone in Victoria and Bondi in Sydney reveals extensive poster marketing for the new device.
As a result of the significant increase in sales for the M8 HTC expects operations in the second quarter of 2014 to swing to profits mainly due to the booming sales of its high-end HTC One (M8) and mid-range Desire series models, company CFO and president of global sales Chang Chia-lin said overnight.
HTC posted consolidated revenues of NT$33.121 billion, gross margin of 21.03%, net operating loss of NT$2.048 billion, net loss of NT$1.881 billion and net loss per share of NT$2.28 for the first quarter of 2014. For the second quarter, HTC aims at NT$65.0-70.0 billion for consolidated revenues and 21.3-22.0% for gross margin.
HTC’s strategy is to maintain growth in the high-end smartphone market segment, rebuild brand positioning in the mid-range segment, and maintain its presence in the entry-level segment, Chang said. There are differences marketing of high-end, mid-range and entry-level models in developed and in emerging markets, Chang indicated.
In China’s smartphone market in particular, HTC’s market share has risen to over 5%, the fifth largest, Chang said. In addition to a retail network of more than 3,000 outlets around China, HTC sells smartphones through online channels, Chang noted.
In Australia is among the top three brands for smartphones.