May 2nd, 2013


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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