Skip to main content

Downward trajectory: HTC reports fourth consecutive quarter of revenue decline

HTC, the beleaguered Taiwanese smartphone maker that seemed poised to regain its financial footing with well-reviewed new flagship products, may have a bumpier road to recovery than previously predicted. In an earnings report on Monday morning for the first calendar quarter of 2016, the company reported a dip in revenue of 64 percent, and a 78-percent dive in profits year on year — the fourth consecutive quarter of major declines.

HTC’s losses amounted to about $148 million in the first quarter of 2016, a far cry from 2015’s comparatively rosy first quarter. Back then, it raked in 41.5 billion Taiwanese dollars (about $1.29 billion) in revenue and 8.2 billion Taiwanese dollars ($250 million) in profits. By contrast, so far this year, HTC has only managed a paltry 14.8 billion in Taiwanese currency ($460 million) and 1.8 billion ($60 million) in profits.

Recommended Videos

The company’s solution is cost cutting, predictably. Some of this is tangible — HTC recently sold real estate — while other measures involve the continued trimming of fat from the company’s product development and manufacturing lines. (In August of 2015, the company eliminated 2,250 “redundant” jobs — about 15 percent of its staff.) “HTC will continue to streamline processes and optimize resources to develop products in the most effective way,” the firm said in a related statement.

Despite the first quarter’s dire implications, HTC asserts publicly that it remains confident that things are looking up. It projects growth in the second quarter of this year thanks to “strong launches” both for its new flagship smartphone, the HTC 10, and its HTC Vive virtual reality headset. (In March, the company reportedly sold 15,000 Vive units within the first 10 minutes of their availability — a development which saw the company’s stock jump 19.75 percent.) And with supply chain improvements in place, the firm’s CEO, Chialing Chang, predicts the company’s smartphone division will break even as early as the third quarter of this year.

“The media and consumer buzz around HTC, including for the keenly awaited launches of the flagship smartphone and Vive virtual reality system, clearly demonstrate our leadership in innovation, and have provided a great boost to the HTC brand,” Chang said in a press release. “We have been working hard to lay the groundwork over the past year.”

A substantial bit of that groundwork will involve tapping the Vive’s burgeoning ecosystem. Earlier in May, the company debuted a VR accelerator program, Vive X, that’ll see $100 million of its own capital invested in startups based in Beijing, Taipei, and San Francisco. In return for funding, office space, and the mentorship of HTC’s VR development team, companies which are selected for the program have agreed to pay HTC a “small amount” of their profits — a revenue arrangement which could become quite lucrative as VR continues to make consumer inroads.

The smartphone markets presents a tougher challenge. HTC’s total global share of cellular subscribers stood at 3.2 percent as of January, market analytics company comScore reports —  a sharp 0.6-percent drop from March 2015’s 3.8 percent. Clawing out from that position won’t be easy, but HTC may have a helping hand — rumor has it that the company is set to produce the next phones in Google’s premium Nexus line.

Kyle Wiggers
Kyle Wiggers is a writer, Web designer, and podcaster with an acute interest in all things tech. When not reviewing gadgets…
Baseus power banks are the best way to charge your phone after these discounts
A woman holding a phone with a Baseus Am41 Magnetic Power Bank attached to it.

One of the worst things about being a doomscroller isn't the information you're getting, it's the fear that your battery will die and the scrolling will have to end. This is especially true if you're stuck without power, waiting for the doctor or dentist to finally call your name, or have any other sort of emergency. But, Baseus has you covered with their excellent selection of on-the-go power banks made for your iPhone. Since they're small and fit directly to your phone's magnet charging area, you can think of them more as battery extenders than anything. Plus, if your phone's internal battery is starting to have battery trouble, a Baseus charger is a great way to avoid an annoying battery change session. The best news, however, is that they're all on sale. Here's what you can expect to see coming up:

Baseus Am31 Mini Power Bank — Was $70, Now $50

Read more
Nothing Phone 3: A unique phone that’s not a true flagship
The Nothing Phone 3 in white

As smartphones have become extremely homogenous, companies must find unique ways to stand out from the crowd. For London-based Nothing, this has meant a singular company focus on blending smartphone features with unique designs that allow their phones to stand out in a sea of sameness.

The Nothing Phone 3 is the latest addition to a line of Nothing phones that are unique and polarizing in their design. Earlier this year, Nothing launched the Phone 3a Pro with a unique camera array, and the Phone 3 builds on this while also evolving the Nothing design language.

Read more
Plaud Note, the professional-tier AI notetaker, is 20% off for Prime Day
Four colleagues have a conversation around a Plaud Note AI notetaker.

Lately, as I've been working through stressful hospital visits with family, I've encountered something I haven't in quite awhile. As I hear doctors, nurses, and family say things, I'll be completely unable to remember them moments later. There's just too much going on all at once. Early in my career I encountered the same issue. There were just so many new facets of what I was doing entering my head all at once, from many sources, that it was impossible to keep track of it all. If only there were AI notetaking tools that have helped me through this. AI notetaking tools like Plaud Note and Plaud NotePin, which are both 20% off for Prime Day (from $159 to $127 for either device, saving you $32) and available by tapping the button below.

PLAUD Note Voice Recorder

Read more