HTC Corp (TPE:2498), the smartphone manufacturer based in Taiwan, released its financial results for the first quarter of the current fiscal year showing a net loss of T$1.88 billion or $62.06 million.
The quarterly loss of the Taiwanese smartphone manufacturer is higher than the T$1.59 billion expected by Wall Street analysts surveyed by Reuters. HTC Corp (TPE:2498) posted T$85 million profit in the same period a year ago.
HTC expects to generate profit next quarter
According to the company, its revenue was T$33.12 billion, down by 22.6%. HTC Corp (TPE:2498) expressed confidence that it will be able to deliver a profit next quarter.
Last month, the Taiwanese smartphone manufacturer noted that its revenue in March rose 2.16% driven by its upgraded flagship smartphone, HTC One M8.
HTC Corp (TPE:2498) suffered higher than expected losses during the first quarter, most likely because of its ineffective marketing strategy. The sales performance of its previous flagship smartphone, HTC One was weak despite receiving positive reviews.
Cher Wang, chairperson of HTC Corp (TPE:2498) admitted that the company did not do well last year.
Reuters noted that the advertisements of the Taiwanese smartphone manufacturer for the device were criticized by many as confusing. As a result, the market share of HTC Corp (TPE:2498) dropped significantly.
Data from Strategy Analytics showed that its global smartphone market share declined from 10% to 2% last year. HTC Corp (TPE:2498) previously held the number 3 spot behind Apple Inc (NASDAQ:AAPL) and Samsung Electronics Co. Ltd (LON:BC94) (KRX:005935).
With its HTC One M8, the Taiwanese smartphone manufacturer aims to re-position itself as a challenger to Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) — the market leaders in the smartphone industry. Dennis Chan, an analyst at Yuanta Securities commented, “The M8 is good, but it’s not as revolutionary as the previous flagship. Everyone is watching the second quarter to see how it sells.”
CNET.com, a technology website described the HTC One M8 smartphone as a “stunning sequel” to the HTC One, and gave a 4.5 stars out 5 rating to the device.
The shares of HTC Corp (TPE:2498) closed at T$159.50 a share, up by 3.57% on Monday, April 7 in Taiwan.