HTC may post a loss as supply problems affect sales

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Pressure for smartphone companies to perform can be intense. Too often, the focus is on growth, and if you’re not showing constantly expanding sales, the implication is often that your doing something wrong. Take HTC, for instance: for all the talk about how it’s struggling to attract shoppers and revenues have been down compared to last year, we tend to gloss over one important fact – that it’s still turning a profit. Sure, those profits are dwarfed by the numbers seen by the likes of Samsung, but it’s difficult to paint a company as an abject failure when it’s still managing to make money, month-in and month-out. At least, that’s been the way things have gone for HTC so far, but a new rumor suggests that the situation could soon be changing, with the company posting its first quarterly loss.

Remember back when the One first launched and we heard about the effect that shortages of its UltraPixel camera was having on stock availability? It sounds like the company’s finding itself in a similar boat now, this time with shortages of HTC One Mini case materials getting in the way of HTC’s ability to meet market demands.

While this shortage alone wouldn’t be the end of the world, combined with all the other problems HTC’s been reported to endure, there’s a chance that it could lead HTC to its first quarterly net loss. That’s one milestone we doubt HTC has been looking forward to.

Source: Reuters
Via: phoneArena

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bitsRead more about Stephen Schenck!