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HTC is bracing for its first ever loss

HTC’s upcoming quarter isn’t expected to be a good one for the ‘pride of Taiwan’. The company is expecting to post the first loss in its history as revenue plummets.


Taiwan’s HTC said today in an earnings call that its expecting revenue to drop as much as 30 percent in the next quarter as it struggles to put out competitive mid-range products and its high-cost low-margin HTC One phone fails to take off.

HTC said during the call that its operating margins are expected to fall to between 0 and negative eight percent in Q3, from 1.5 percent in Q2 and 7 percent a year earlier. The company expects revenues to be between $1.67 billion and $2.01 billion this quarter, well below analyst’s expectations $2.51 billion. Profit this quarter was a slim $41 million.

In a press release, HTC chalked up the poor quarter to a “higher cost structure and a lack of economy of scale.”

HTC said it also has a “a range of innovative and competitive mid-tier products” expected to come online next quarter, which should turn things around.

HTC is currently ninth in the global smartphone market, with a 2.4 percent market share.

Source: HTC

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