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HTC records first ever quarterly loss

Sam Loveridge



HTC has reported its first ever quarterly loss in its financial reports for the three months ending September 2013.

Posting a net loss of 2.7 billion Taiwan dollars (£62 million), HTC has slipped into the red for the first time, despite launching the HTC One flagship range of smartphones.

Struggling to compete with the likes of Samsung and Apple, the Taiwanese smartphone manufacturer has seen sales strongly affected by supply chain issues and internal company turmoil.

The company also posted a 3.5 billion Taiwanese dollar (£74 million) operating loss, recording a sales figure a third less than for the same period last year.

HTC may follow in the steps of BlackBerry and Nokia, looking for a larger company to buy out the ailing manufacturer and assist in the future.

However, HTC has been adamant that a sale is not an option, despite analysts suggesting the outlook for the future is rather bleak.

“Fundamentally there are a lot of things that need to be fixed,” said Laura Chen at BNP Paribas. “[There is] no sign of recovery anytime soon.”

Analysts suggest HTC needs to address its marketing, suppoly chain management and streamlining its product line.

Although HTC CEO Peter Chou is not agreeing to any interviews, HTC has offered this statement to Reuters:

“HTC’s board and broad employee base remain committed to Peter Chou’s leadership. The (Flagship) HTC One product family – which has been met with accolades by media and consumers alike – was a result of Pete’s vision and leadership, and speaks for itself.”

The HTC One was released in February to great critical acclaim due to its aluminium design, improved HTC Sense UI and UltraPixel camera technology.

HTC has since released the HTC One mini as a 4.3-inch alternative to the flagship model.

Next, read our pick of the best mobile phones of 2013.


October 4, 2013, 12:50 pm

I feel very sad for HTC, I've had HTC's as mobile devices for a very long time. Right from the HTC TyTan. if anyone remembers that one. Somewhere along the line, HTC lost it's way. When Samsung and Apple entered the market, their marketing seemed to be in your face and always present somewhere in the media. HTC, suddenly began to take a backward step with their own marketing. Their phones were good, don't get me wrong, the Desire was a fantastic phone, but you didn't see them advertising anywhere. A new generation of phone buyers, were seeing Apple and Samsung and not HTC. HTC's new products are beautifully made on a par with apple, compared to Samsung's plasticky offerings. But samsung offer TV's and vacuum cleaners and sound systems and home cinema. HTC just make phones and that's the difference. Samsung are everywhere in the home and people like that because they believe it's a brand they can trust unlike HTC. Apple are viewed as makers of superlative high end products, innovators, HTC aren't viewed like that. So what's the answer. Well HTC have to have a bigger presence in the media world, They have to show potential buyers what the product can do, how good the quality is. They shouldn't have to rely on gimmicks like 'tell us what else HTC stands for' and pay for a star like 'Robert Downey Jnr to tell us what about the product...nothing. They're just wasting money that could be spent elsewhere. I was recently in an apple store as my Son wanted to look at the Iphone 5S. I was sitting on a stool and overheard one of the advisers say to a guy who happend to mention he was looking at HTC, 'Mate, you don't want to touch HTC!!'. That says it all really. HTC need to educate potential buyers and change people's perceptions about how good their products really are and that they will support the products you buy. Too many times I've heard that HTC aren't going to support a whole raft of their products as they are too old or not powerful enough or is it that they can't be bothered. The answer, stop making so many different versions of a phone. Then evolve the product and innovate in the backround. Until that happens, HTC will struggle just like Blackberry are at the moment.

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