A Bleak Estimate Of Q1 2014 Has Got HTC To Focus On Low-Priced Phones

 

As we look at the Q4 reports that HTC released in 2013, the figures are not that great. Moreover, the company does not expect a lot of growth in the Q1 of 2014.

The Taiwanese smartphone maker showcased a revenue of NT$42. 9 billion, i.e. $1.4 billion USD approx. Well, it is a whopping 28% decline from its Q4 of 2012 in which the company posted a revenue of NT$60 million i.e.  about $2 billion USD. The Taipei based mobile maker had net profit of a meager NT$0. 31 billion (about $10 billion) for the quarter. The company’s gross margin was 17.8%. However, its operating margin was negative 3.7%.
The company is expecting more decline in the Q1 of 2014 somewhere between NT$34 billion ($1.12 billion) and NT$36 billion ($1.18 billion). This is their third consecutive quarter when HTC is facing losses.
The company is known for its Android smartphones. It added a variety of new phones to its mid range Desire segment and a champagne gold edition of HTC One in select markets.
It seems that the company is reworking on its strategies so as to recover from the losses spread over a year of declining revenue, supply chain issues and departure of quite a few important executives.  According to what CEO Cher Wang has informed, HTC will be selling more products priced between $150 to $300. This will also include a new flagship phone. This phone is expected to compete with other companies like Xiaomi and Samsung.