HTC’s unaudited Q2 numbers confirm net losses of $166 million
HTC was able to string together a few quarters of meager profits, but it looks like the company is back to bleeding money. HTC’s unaudited financial results for the 2nd quarter of 2015 show net losses of $166 million, with revenue being just $1.07 billion opposed to their prior expectations of nearly double that amount.
We don’t get a clear idea of what, exactly, caused the losses, though many are quick to suspect underwhelming sales of the HTC One M9 as the culprit. That may be one significant side of the story, but there could be more at play.
For starters, HTC’s return to mid-range hasn’t gone so well. The company has made some very compelling devices in that space in recent months, but rising competitors in Asia — namely the Chinese market — are making life difficult for the Taiwanese company.
The situation is that up and coming smaller OEMs are making flagship-quality devices for mid-range prices, and folks are starting to warm up to the idea of going with these fresh new faces rather than paying a premium for something familiar. Huawei, Xiaomi, Meizu and OnePlus are just a few of the notable ones that immediately come to mind, with many others also fighting fiercely to win wallets.
HTC is also pouring a lot of money into their budding lifestyle business, which places emphasis on wearables and accessories which can be used with any Android device. We’re sure that stuff didn’t come cheap, and they still have a fitness band and VR headset to push out of the door before seeing any returns.
As we’ve said before, though, the situation still isn’t dire enough for someone (like, say, ASUS) to attempt a buyout. The company is still in a period of transition as they shuffle management and usher in a new CEO, so there’s still time yet before we can determine whether they can ever right the course of the ship.
[via HTC]