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HTC One delays affect HTC’s profit, it dips to lowest in Q1

Recent audit shows that HTC profit has dipped by more than 98% compared to the same period last year.  A preliminary result of this Taiwanese mobile manufacturing giant reveals that HTC included some preliminary Q1 results in its monthly financial report and the numbers aren’t looking good.  HTC had a disastrous last year, particularly the second half. This year it hoped that it could turn table reverse by its new products, but due to some difficulties in manufacturing has delayed the launch and hence the supply. Till now only three countries viz. UK, Taiwan and Germany saw the launch on time.


Report says HTC’s net profit in the first quarter of 2013 has been just $2.8 million which is a whopping 98% drop compared to the same quarter in the last year. The report also says that net revenue for Q1 2013 dropped by 37% to $1.4 billion.

A Taipei based  market research firm named Daiwa Securities said that  the effect of lost sales due to shortage in production of HTC One in the first quarter will affect the company in the long run. But it is also predicted that an early launch of HTC One, at least ahead of Samsung Galaxy S4 can provide a fairly good chance to HTC of having a decent sales in the second quarter.

According to the schedule announcement, the HTC One was supposed to be launched globally in mid-March. But HTC could manage to manufacture only some limited number of handsets which was enough only for a limited retail launch in the UK, Germany and Taiwan. It is ril not too clear  and any confirmation is yet to come whether the company has resolved the HTC One camera module supply issues, or not. As of now, the device is expected to be launched in the US, rest of Europe and Australia before the end of April.

It is expected that HTC’s sales volume will see a significant improvement in the second quarter because of the HTC One and the recently launched Facebook phone – the HTC First. HTC First is intended mainly to those more than 1 billion people who are simply addicted to Facebook.HTC First also included a Facebook-made launcher called Home.

 But we need to wait to know the full effect of HTC One till the end of this year as the results of third quarter will not be visible before the end of this year.

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