HTC Profit Earnings: Records Lowest Revenue in Q1 2013

Taiwan based smartphone manufacturer HTC, according to bloomberg recorded it's lowest quarterly profit. The delay of a it's new flagship phone HTC One, has had a huge impact on the company's revenues. In Q1 of 2013, the smartphone maker made only NT $85 million, which is a 37 % drop in revenues compared to last year, bringing it up to NT$ 42.8 billion. According Taoyuan, the company is experiencing six straight quarters of decline.

HTC was forced to delay shipments of it's new flagship phone due to shortage of camera components which is a key element of the smartphone. HTC might see a turn around in it's fortunes in q2 of 2013, as the smartphone is to be made available before Samsung's Galaxy S4. Besides, HTC One is one of the most anticipated handsets of the year.

Lu Chia- lin, a Taipei-based analyst at Daiwa Securities said "HTC One's production shortage means lost sales in the first quarter will be lost forever, not just delayed,"

"HTC One has a good design, and they still have lead time ahead of the S4, so revenue has a good chance to rebound this quarter." he added.

The company with it's new marketing chief Benjamin Ho, is taking more aggressive steps in building a refreshed brand image. Signs of this was found, in New York, when HTC gatecrashed into the Galaxy S4 event, showing of it's new smartphone to people, who were standing in ques.

Also, HTC CEO Peter Chou is confident that HTC One will change fortunes for the company. With the profits, having fallen by 70 percent, over the past two years, it looks like the company has pinned all it's hopes on it' new flagship smartphone.

Source: Bloomberg