toggle

AAPL Stock: 118.44 ( -2.86 )

Printed from http://www.macnn.com

HTC profit plunges 98 percent, makes just $2.8M profit in Q1

updated 06:52 am EDT, Thu May 2, 2013

HTC profit nosedives, but expects One-led turnaround for Q2

HTC has announced a Q1 profit of just $2.8 million for the months of January, February and March. This marks a year-over-year profit decline of a monumental 98 percent compared to the same period last year. However, the figures don't include sales of its new flagship One handset, which it expects to will make a significant and positive impact on its Q2 figures.

The Taiwanese company forecasts a big jump in revenue for the next quarter on the back of the sales of the HTC One, which is set to be further bolstered by the impending launch of its midrange handset, carrying the 'M4' codename. HTC expects revenue for Q2 to increase from its Q1 gross revenue of $1.45 billion to $2.4 billion. If its prediction is accurate, it will mark a turnaround of 63.6 percent in earnings, giving some comfort to shareholders.

However, to help engineer the turnaround, the company is trimming its profit margin on devices down to a mere 1 to 3 percent. Depending on market, the HTC One is retailing for up at least $100, or more, less than the its most significant competition in the Samsung Galaxy S4. The two devices are closely matched in terms of their hardware specifications; however, the HTC One has a display with a higher pixel density than the Galaxy S4 and features a more upmarket aluminum design.





by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

HP 14-x030nr 14-inch Chromebook

If you're like us, chances are you've come to realize that you need the ability to access the Internet on the go. Also, you've prob ...

15-inch MacBook Pro with Force Touch

Apple's 15-inch Retina MacBook Pro continues to be a popular notebook with professional users and prosumers looking for the ultimate ...

Typo keyboard for iPad

Following numerous legal shenanigans between Typo -- a company founded in part by Ryan Seacrest -- and the clear object of his physica ...

toggle

Most Commented