HTC posts loss in Q3, predicts declining revenue in Q4

05 November, 2013 | Comments (112) | Post your comment

Tags: HTC, Android

HTC's unaudited report for the third quarter of this year pointed to the first quarterly loss in the company's history. The final report confirms that and doesn’t paint a rosy picture for Q4 either.

The company's revenue for Q3 this year was $1.6 billion. That's a sizeable drop from the $2.4 billion in last year's Q3, and $4.54 billion for the same quarter in 2011. The gross margin was 20.4%, down from 25% last year, while operating margin was -7.4% compared to a positive 7% in Q3 last year.

HTC posted lower monthly revenues for the three months of Q3, despite a nearly 40% rise in revenue month to month in the last month of the quarter, September. Q4 isn't starting off well with decreased revenues both month on month and year on year.

For Q4 this year, HTC is forecasting $1.4-1.5 billion in revenue with a gross margin of around 20%. HTC made $2 billion in revenue during last year's Q4.

It's not all gloomy – Peter Chou says with the launch of the One mini and One Max, plus midrange and entry-level phones in the Desire line, HTC has offerings in all price segments. “We have delivered good progress in the third quarter, with the introduction of HTC One Mini and One Max, we now have an HTC One for everyone,” says Chou.

HTC's campaign starring Robert Downey Jr. is paying off, having raised brand awareness by 12% and "brand momentum" by 15%. Will that be enough? We'll see if HTC manages to beat expectations in Q4 or if it will continue its decline.

Source 1 (PDF) • Source 2 (XLSX)




HTC posts loss in Q3, predicts declining revenue in Q4 - reader comments

  • Jarret

Worst case scenario...

  • Reply
  • 2013-11-07 05:44
  • 25GS
  • Fight-the-Powah

for a time it was good for HTC...but switching from Windows to Android really killed them. HTC made its name from making Windows Mobile devices that were elegant and had advanced features. If they stayed with WP, WP would be much more mature a...

  • Reply
  • 2013-11-06 16:44
  • wHrS
  • ALonZo

The HTC One - the world's best smartphone. I have one as well and it is simply fantastic. The problem HTC have is that their advertising needs to be better. The stupid advert Robert Downey Jr and co dancing to the speakers of the HTC One make it...

  • Reply
  • 2013-11-06 16:35
  • MIaF