It’s no secret by now that some of HTC’s magic has worn off over the years. In fact, it’s more than worn off — it’s almost disappeared. The company still makes fantastic phones, but hasn’t been able to match the marketing prowess of their neighbors up north in South Korea, namely Samsung and LG.
That has resulted in the company’s first consecutive quarterly losses ever, and the trend continues with the release of today’s unaudited Q1 2014 results. HTC announced they pulled in revenues of over $1.92 billion on the quarter, but that still amounted to a net operating loss of about $64 million before taxes.
On the slightly brighter side, HTC did reverse their trend of declining revenue year-over-year as that number is up a slight 2.2%. HTC also expects Q2 2014 to be a profitable quarter, largely due to the fact that their flagship HTC One M8 has started seeding into the market as of March 25th. How much profit is an entirely different question, one that can only be answered with time.
It’s tough to see the company who once seemed like a giant now struggling to keep up with the industry. HTC has admitted to their own shortcomings, with the company particularly pointing out their troubling marketing efforts and their negligence in filling out the entry-level and mid-range markets.
The former bid cost the company $1 billion with almost nothing to show for it, while the latter gave Samsung room to flood the market with a myriad of devices at all price points and virtually no competition.
It’s a series of mistakes the company won’t likely make again, though you have to wonder if it’s too late to start pushing the train back in the other direction. We’ll certainly be looking forward to forward statements and an inevitable conference call about all of this at some point within the next month or two.