HTC Q1 2013 Earnings Reveal 98 Percent Decline in YoY Profit
Smartphone vendor HTC, today announces unaudited consolidated results for 1Q 2013. According to the press release, total revenues were NT$42.8 billion, operating income was NT$43 million and net income after tax was NT$85 million ($2.85 million). Analyst were expecting earnings of NT$467.5 million, according to Reuters.
These figures represent 98 percent year-over-year fall in net profit, which was NT$10.9 billion in Q1 2012.
“As HTC failed to establish its brand image by selling its most important flagship phone on time, it’ll be very difficult to push on the mid- and low-end phones when HTC launches them in Q3-Q4,” said Dennis Chan, an analyst with Yuanta Securities in Taipei (via Reuters). “Sales in the second quarter will bounce, but they will lose momentum again in Q3-Q4.”
HTC is expected to see a boost in profit in the second Q2 2013 as a result of the launch of the their new flagship smartphone HTC One. The HTC One launch has been hit with delays, mainly attributed to component shortage.