HTC Q1 results show slim earnings

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We’d already gotten the bad news about HTC’s horrible Q1 2013, but those were unaudited results — the real deal is in, and it’s looking like much of the same. HTC’s revenue dropped off fairly significantly, with revenues reaching just $1.42 billion in the quarter. That was enough to drive a profit of of close to $2.9 million. Sure, as private citizens with five or six figure jobs that looks like a big number, but for a major player in the smartphone arena those numbers are troubling.

Thankfully for HTC, it doesn’t look like that downward trend will continue. The company forecasts revenues of $2.7 billion in Q2, and while that isn’t a significant bump from the $1.42 billion done this quarter it has to please HTC that its boat is rocking more than it is sinking. With recent reports that HTC One components are flowing in and stock is normalizing HTC is in good position to meet its goals. The main reason Q1 was so bad was because of the HTC One’s delays.

The momentum HTC could have gained by launching weeks or more than a month earlier than the Samsung Galaxy S4 might have given them a very solid foothold. That opportunity is forever lost, though, and with Samsung going full speed ahead with its latest flagship it’ll be even tougher to convince those looking for a new smartphone to go with an HTC One.

HTC’s biggest goal in Q2 and beyond will be figuring out how to sustain sales of the HTC One, as the company anticipates releasing just a handful of handsets this year opposed to its over-saturation strategy of yesteryear. Recent rumors suggest the HTC One could come in Mini flavoring by the end of this quarter, a device that could be a decent affordable stopgap for HTC to ride on until it possibly launches a second half home-run.

It wasn’t long ago that HTC was on top of the mountain and king of the hill, but the mobile industry moves quickly and no lead is safe. Barclays analyst Dale Gai said he doesn’t expect HTC to be able to reclaim that top spot, but notes that HTC has a good enough strategy and a strong enough product that it won’t fade away into obscurity anytime soon. Let’s hope for the sake of competition that foresight turns out to be accurate.

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  • KOLIO

    $2.9 Million (actual ) vs. $2.8 Million (est.):

    If it’s all the same to the powers that be,send the extra $100,000 this way,where it’ll be appreciated…….

  • techgui

    a profit of 3M? how the hell are they still running this show? As good as the One is, with a cashflow so low I wonder if anything can help them

    • Butters619

      .2% (2/10 %) profit isn’t going to keep you in the game for very long.

    • TimmyB44

      No, that’s not true. Don’t confuse profit with revenue. A company that does $1.4B in revenue in three months has LOTS of cash flow. Sadly, they just had as much flowing out as they did flowing in! They are in good shape, as every single analyst will agree with their revenue almost doubling this quarter. There is no way that their expenditures are going to go up in a like fashion. The only people who are going to b**** about a company making such a small ROI are the stockholders.

      • KOLIO

        Good points.Also,not every company is a behemoth like SAMSUNG/APPLE/EXXON-MOBIL,etc.. & doesn’t have to be,in order to be successful/profitable.

  • Patrick Washington

    So lets see……you posted an article a while ago with HTC’s estimated quarter 1 results, then when the actuals occur people are suprised?? Really? HTC did not release ANYTHING in Q1. So why would their profits be high? They released the One in Q2. Guess what? Their profits will looking entirely different Q2, you know when they actually released a phone (actually a couple). The One it seems as evidenced by all the sales and hype coming from various blogs, will make HTC start to look respectable this Qtr. Calm down.

  • derrick mcgalliard

    Come on, news about HTC first quater being bad is old news, talk about how things are currently looking not news that done passed already, yall doin a good job making HTC look relevant again talking about this type of stuff. That was sarcasm

  • izzyt

    man, htc was the pioneer in android smartphone, with the q1…right? so i hope that they still have some engineering brilliancy in them, somewhere…
    i really like the build of the htc One and hope they come out with awesome smartphones like the One

  • agl82

    Mark my words. HTC will be bankrupt within 5 years. They got complacent and Samsung ate their lunch.

    • famished

      Not if they continue to innovate and focus their sights. The previous One series was a mess- I couldn’t tell which version was the flagship. Samsung came up with solid game plan which is to create a flagship brand and then diversify from it. You have the S line with a mini, Tab and Note series now. With the previous interation of the One- it was like, “Uh, which One is it?” There was an S, an X, a VX (?), a V? Should gone for a J.C. and an O.P.P. while they were at it. I think Verizon isn’t helping the cause either. Why hold out on the hot product? Let’s just leave “Droid” to Motorola (they seem to do such a better job with it anyway).

      • rick slick

        Removing consumer choice (lack of SD card, removable battery) is not innovation. That’s copying Apple.

        • famished

          They’re probably just making sure they get their $8 worth.

  • Bryan Kirckof

    I just got the one yesterday and I must saw it’s amazing. I’ve owned an HTC phone for 4 years now and I must say they’ve really outdone themselves.

  • Mittar Khalsa

    I really hope the One pulls them out. I think the smart phone market needs their craftsmanship.

  • http://www.facebook.com/byron.l.ross.jr Byron L Ross Jr.

    Yea I hope they make it through. I bet the HTC One can sell at least 10 million. Just my estimate, Im no analyst of course. I just feel the One is a solid device and packs solid features

  • TechGuy22

    i really hope they make some money next quarter. thats why i went with them this year instead of sammy

  • famished

    Not taking sides here, but from multiple reviews coming in it seems like the HTC One is hitting it out of the park. With the new Mini on the way, Sammy’s really got a run for its money. The ONE is a beautiful, well-designed piece of equipment. It’s fast, slim, sleek and feels excellent in the hand. The one quirk I really don’t like in the ONE is they removed the recent apps preview panel. Also, it’s weird that when you’re in the app drawer, you have to hit the home key to to get out- you can’t use the back key. I thought the phone was being unresponsive because of that. It is nice that the unit starts at 32GB to account for the OS, bloatware and lack of expandable slot. My wife loves her new HTC One but I’m sticking with the Note II. I’m rooting for HTC and every Android OEM out there. I don’t know where all this vitriol comes from when you see fans hating on companies that don’t make the products they buy. Choice is one of the reasons I adopted Android and the best we can do as a community is to push manufacturers to make better devices.

    • LTracte

      you access the recent apps menu by double tapping the home button.

      • famished

        Thanks! I’ll let the wife know. Is there a way to have the soft keys illuminated when you press them? It seems they only light when they sense it’s a low light situation.

  • XtremeMorph

    I guess Android phone has reach in a state of just looking at how it looks instead of how it work. The era of new 1phone has begun.

  • Jayshmay

    I think it’s too late for BlackBerry, but not HTC. The One will be successful, not as successful as the S4 though due to brand recognition. But if HTC follows up with the One next year things will start to look better for them.

    I still like Samsung a lot more cause I think Samsung listens to their customers.

  • Dean Politis

    The HTC One is amazing. The feel in your hand is like nothing else. I just love to hold it. My biggest concern with HTC phones has been battery life. I had the HTC Rezound which was a great phone hampered by horrible battery life. The battery life of the HTC One has been great.

    HTC has done an amazing job with the HTC One and I’m sure that the second quarter will be amazing for them.

  • rick slick

    If only HTC wouldn’t alienate customers by excluding SD card and removable battery, they might actually have a chance… who’d thunk?