HTC predicts first ever quarterly loss in Q3 despite HTC One feelgood factor

HTC predicts first ever quarterly loss in Q3 despite HTC One feelgood factorThe HTC One is a great phone, but one top smartphone does not a turnaround make, and it seems the One has only partly halted HTC's recent slide.

The Taiwanese firm's just-announced Q2 financials have revealed an 80% drop in profits versus last year, while the forecast for Q3 is even worse: HTC's first ever quarterly loss.

Overall, HTC brought in NT$70.7bn (£1.55bn) in revenues for the quarter, but made a profit of just NT$1.25bn (£27m) for an operating margin of just 1.5%.

But it's HTC's guidance for Q3 that's making all the headlines, as the company is warning it may be headed for its first ever operating loss.

Despite that, HTC's earnings report was generally positive, saying the HTC One had outperformed last year's flagship devices and had helped “establish strong brand awareness”.

“My leadership team continues to focus on execution,” said HTC boss Peter Chou.

“We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H.”

Fine, although we'll eat our socks if the One mini is anywhere near as successful as the One itself. That said, it doesn't need to be – it just needs to be better than HTC's recent efforts. Of more concern is the low end, where aside from its moderately good looks the Desire 200 fails almost entirely to set the pulse racing in any meaningful way.

And having now come up with a winning recipe for mobile hardware in the HTC One and a moderately successful (if sometimes a bit heavy-handed) approach to marketing its handsets, what HTC has to do now is stay the course.

But with it having had more marketing strategies in the past couple of years than we've had hot dinners, will it be able to resist the temptation to keep tinkering despite claiming to have now found the path back to the promised land?

Read more about: HTC One

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