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HTC predicts losses in Q3 2013


In what seems like probably the worst financial year for HTC, the company has dropped a bomb on its investors. According to the second quarter results published by the Taiwanese manufacturer, the third quarter is going to be even worse. Giving a preview of the Q3 results, the company predicts a drop of 0 to -8% in the operating margin. The quarterly revenue is set to see a fall of over NT$20 billion ($668 million) from Q2 which isn’t a good sign at all. The profit margin will also see a drop of over 2-5% compared to Q2.

It is a real pity that HTC is going through tough times despite having a praiseworthy smartphone like the HTC One in the market. Its miserable run in the industry is very hard to decipher, but the company blames the “lack of economy of scale“. With the launch of new mid-range smartphones like the One Mini, things could go a little better for HTC in Q4 and the holiday season. Also, it won’t be wrong to take a leaf out of Samsung’s book and begin effective marketing rather than relying on word of mouth.

Source: HTC

Via: The Verge

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