HTC’s profits fall by 98% in Q1 despite the HTC One launch

It’s tough to be HTC these days. If you thought that 2012 was a hard year on them, at least it didn’t prove to be as financially complex as 2013 has. The company has posted their Q1 results and even though there were a ton of things aligned to set the company enjoy some glorious results, the profit margins prove the contrary.

So far the company profits are down 98%, and we didn’t get that number wrong. These numbers have plunged to NT$85 million ($2.85 million) from NT$4.5 billion ($152 million) in this same quarter last year. The same can be said about revenue, which dropped to to $1.45 billion from $2.2 billion.

Surely the HTC One is a much better product than the HTC One X that was launched in this same period in 2012, and a lot better than the Sensation variants that kept HTC going during 2011. Sadly we do know of all the hardware shortages that the Taiwanese company has faced in order to meet all the demand behind the HTC One. Our best theory is that these delays pushed the company results back dramatically.

Obviously Q2 will be the true test for the HTC One, and we’re just hoping that HTC can continue their innovation pattern while this happens. According to Peter Chou, the worse for HTC is probably over, but the bottom line has to reflect that as well.

Source| VIA

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