Profits rose last quarter for the mobile-device maker, but revenue continues to slide, its latest monthly figures show. Can it revive sales with new offerings amid increasing competition?
Lance WhitneyContributing Writer
Lance Whitney is a freelance technology writer and trainer and a former IT professional. He's written for Time, CNET, PCMag, and several other publications. He's the author of two tech books--one on Windows and another on LinkedIn.
After reporting lower sales for the quarter ended in June, the Taiwanese mobile-device maker announced on Monday a nearly 33 percent drop in its revenue in July, compared to the same month last year. For July, HTC took in revenue of 10.6 billion New Taiwan dollars ($353 million) vs. 15.7 billion New Taiwan dollars ($522 million) in July 2013. Compared to June, the decline in monthly revenue was nearly 52 percent.
Like many smartphone vendors, HTC has been clobbered by Apple and Samsung, which together own most of the market. Competition from Xiaomi and Lenovo has also been heating up to steal away customers from players such as HTC. Further, the company's latest flagship phone isn't winning over enough buyers, at least according to one analyst. In a recent investors note, Canaccord Genuity analyst Michael Walkley cited surveys from his firm that labeled sales for the HTC One M8 as soft.
Walkley blamed the dour results on "intense high-tier Android smartphone competition" and said that such competition is expected to increase for HTC in the second half of the year. At that point, HTC will face an arena of Samsung smartphones, phones from Chinese manufacturers Xiaomi and Lenovo, and Apple's expected iPhone 6.
In discussing the second-quarter results last week, HTC Chief Financial Officer Chialin Chang acknowledged the company's current woes, confessing that the "initial excitement" for the HTC One M8 and other new devices "have settled at a lower level." But he added that he believes the slide has come to an end.
But with Apple's iPhone 6, new iPads, and potentially an iWatch launching later this year, HTC's offerings could get lost in the crowd, especially as those critical holiday sales start to heat up in November.