HTC’s Announces Q3 Revenue Loss Of $151 Million
Oct 06, 2015
HTC has been one of the companies whose name was almost synonymous to Android, but those days of a being a leading smartphone manufacturer are long gone for the Taiwanese company. Following its previous trend from the last few quarterly reports, HTC has announced another loss in the third quarter of 2015, making it increasingly hard for the company to assure a comeback. The Taiwan-based smartphone company has announced a loss of about $151 million (NT$4.94 billion) in the last quarter, ending in September. The gross revenue has also dropped about $367 million since last quarter, to an amount of $655 million, incurring a loss of $137 million before tax and other overhead costs.
The tough market resulted in almost half the revenue posted by HTC since last year, although the company had managed to post a slight operating profit of $0.48 million in the same period last year. Net loss before taxes and other expenses has been $13.8 million, down from profits of $1.9 million in the third quarter last year. Though it is still lower than the losses posted in the second quarter when HTC blamed lower demand of its high-end smartphones causing the loss. There has been a 35% drop in revenue which strongly point towards lower sales, but the loss to revenue ratio has remained almost the same. All these data boil down to the fact that HTC phones are still unpopular among the masses, and they are still losing money, with bleak chances of a break.
This disheartening announcement is hardly a surprise since HTC had already issued a profit warning and had planned for a series of layoffs and job cuts in response to the declining market in China. HTC is giving up its all for a new device, which it hopes will bring some relief to the financial condition and the image of the company. This new device, speculated to be the HTC A9 Aero will be powered by a Snapdragon 617 octa-core processor, and 2 GB of RAM, and will feature a 5 inch 1080p Full HD AMOLED display, with 16 GB of internal storage, and support for expandable memory. The device will be priced more competitively than the One M9. Reports also suggest that it will have a 13 MP OIS camera on the back and will run on Android 6.0 Marshmallow. The invites for a virtual launch event of the device are already out.
It is still unknown whether the success of a single device will prove to be enough to save the company, but it might provide the much-needed relief from the financial crunch HTC is facing in recent years. HTC’s global market share has drastically dropped to less than 2 percent in the last few years, which is in stark contrast to how HTC started out as the world’s top smartphone manufacturer by volume.
Source: Android Headlines - Android News