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HTC Q1 net profit drops 98 per cent, HTC One sales expected to boost Q2

The HTC One launched too late to help HTC’s financial situation as the Taiwanese company posts a net profit drop of 98 per cent for the first quarter of 2013.

Falling from last year’s NT$4.5 billion (£97 million) to NT$85 million (£1.8 million) for Q1 2013, HTC’s net profit plummeted 98 per cent. The Taiwanese company also experienced its lowest quarterly profit since 2004 and saw its revenue drop to NT$42.8 billion (£931 million) from NT$67.8 billion (£1.47 billion) for the same time last year.

However, the original HTC One release date was plagued by delays due to unprecedented demand for the flagship smartphone and sourcing issues for UltraPixel camera components.

The HTC One has already received much critical acclaim – we gave it an impressive 9/10 – due to its attractive metal body, 4.7-inch Full 1080 x 1920p HD display and new HTC Sense 5.0 UI. After a successful launch, HTC has now ironed out any supply issues and is confident its flagship will improve Q2 2013 profits.

“Last year we thought we needed to inject some new excitement in HTC’s products, and there was an opportunity for us… because everybody looks the same,” said Peter Chou, HTC CEO, during the earnings call. “I think that we have successfully launched the HTC One. We believe people are really getting our concept.”

HTC hasn’t revealed how many HTC One handsets have been sold so far, but analysts estimate the Taiwanese company will ship 3.5 million HTC One smartphones in the second quarter of 2013. In fact, CLSA Asia-Pacific Markets analyst CK Cheng believes 10 million will ship in total this year, but Samsung Galaxy S4 shipments are predicted to reach 60 million.

“HTC continues to be squeezed between Apple and Samsung at the high-end and an abundance of other handsets in a heavily congested mid-tier,” said Geoff Blaber, Director of Devices and Platforms at CCS Insight. “HTC desperately needs the HTC One to be a hit in order to drive sales, margin and create a halo effect for the broader portfolio.”

“HTC will hope the HTC One launch will provide renewed impetus in 2Q13 and that it can swiftly overcome initial supply constraints.”

Happy with your HTC One? Make the most of it with our HTC One tips and tricks

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