It looks like HTC’s latest flagship smartphone, the HTC One, isn’t enough to rake in the revenues. The latest unaudited results for the second quarter of this year shows profits down by 83% compared to last year. Total revenues reached for the quarter was NT$70.7 billion which is roughly $2.35 billion and with the deduction after tax the profit is just NT$1.25 billion or around $41 million. Last year’s second quarter revenue stood at NT$91.04 billion (around $3 billion) and made NT$7.40 billion (around $246 million) profit.
This year’s second quarter revenue is actually an increase from the first quarter. During the first quarter of this year the company just made a profit of NT$85 million.
This latest unaudited result comes at a time when sales of the HTC One are increasing. Last May, sales of the flagship model increased by 48.03% which is the best record for the company so far this year. The company has also announced that during the first 50 days of its release 5 million units were sold.
Sales reports of the HTC One for June were different though as it went down 24 percent compared to the previous month and down 26 percent compared to June of 2012. One factor affecting this is the release of the Samsung Galaxy S4 which somehow dampened the sales of HTC’s flagship device.
Analysts agree that HTC must expand its product portfolio to effectively compete in the Android market. Samsung is doing well since it offers different devices at different price points thus catering to all huge portion of the market. The expected release of the HTC One Mini may help the company garner sales in the mid-range smartphone category. There’s also a Google Play edition of the HTC One coming out next week which should interest consumers who want the pure Android experience.
Despite the drop in revenue the company is still making a profit which in itself isn’t bad at all.