In a press release held at Taipei, Taiwan, HTC released the financial results for Q2 2013. It reported quarterly revenue of NT$70.7 billion ( $2.3 billion ) , with gross margin of 23.2 % and operating margin of 1.5% . Net profit is NT$1.25 billion ( $ 41.63 million ).
Though HTC was able to show some profits for Q2, estimates for Q3 are not good, showing operating margin of 0% to -8% on NT$50bn to NT$60bn ($1.67 billion to $2 billion) in revenue.
Here is the Q3 2013 estimate from press release.
The Company’s outlook for the second quarter of 2013 is as follows:
- 3Q revenue is expected to be in the range of NT$50bn to NT$60bn
- Gross profit margin is expected to be in the range of 18% to 21%
- Operating margin is expected to be in the range of 0% to -8%
Despite the success of it’s latest flagship HTC One, HTC is still predicting losses for less quarter. These predictions are impacted by Higher cost structure, Lack of economy of scale and Certain provisions needed to facilitate the clearance of aging products in the channel. HTC also says that actions on these issues were already taken and expecting the improvements in Q4 2013.
HTC also says that lack of competitive products in mid & low end tier segments is identified and it is going to launch a range of competitive and innovative products in those segments ( HTC One mini, Desire 600 and Desire 200 seems to be those products).
Here is what Peter Chou, CEO of HTC said at press release
“My leadership team continues to focus on execution. We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H.”
Considering the fact on how many Android fans love the devices produced by HTC, Let’s hope for better results and predictions next quarter. You can find the complete press release here at HTC website.
Written by Praneeth Kancherla
I work as an Oracle Database Administrator & love the most customizable smartphone operating system - Android. At AFN I try to bring you latest on android/smartphone news. HTC One is my current Smartphone.
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