HTC forecasts profitable quarter, with help of One M8
About a month ago we saw HTC report its first quarter financial performance. The One M8 had only just become available, so it was too early to really see it make any impact on the company’s sales – sales which once again (in what was quickly becoming a worrying pattern) failed to offset expenses, leaving HTC at a loss. Would it manage to turn things around? Well, we’ve still got some time to go before the second quarter’s done, but today HTC shared its own estimations for its performance, and what it has to say sounds pretty promising.
The good news: HTC expects to turn a quarterly profit again, something it’s been struggling with since last fall. It might not be a record-setting one, bringing in revenue somewhere on the order of $2.2B (which is down even from the numbers HTC generated in Q2 2013), but HTC’s been on the brink of a crisis for so long that any profits are welcome.
We also see HTC confirm those rumors of outsourcing some of its hardware production, explaining steps it’s taken to reduce costs. Analysts seem to agree with HTC’s short-term assessment, anticipating successful second and third quarters this year, but some caution what the year-end situation might look like for the company. After all, Apple will have a new iPhone, and Samsung may have a quad HD Galaxy S5; will HTC be able to compete? Well, it just might have a new heavyweight in the works, but that’s a rumor for another story.