class=”wp_keywordlink”> HTC 2013 has submitted its preliminary results for the third quarter (September 30). Thus, the Taiwanese smartphone manufacturer since its IPO in 2002, posted a loss for the first time. The deficit amounted to 2.97 billion Taiwan dollars (74.3 million euros).
Thus, the decrease was even higher than expected. Analysts polled by Thomson Reuters had expected a result of the profit warning issued in July with a loss of 1.8 billion Taiwan dollars. A year ago, HTC had reported a net profit of 3.9 billion Taiwan dollars.
Sales also fell short of expectations. Instead of the targeted 50 to 60 billion Taiwan dollars HTC took only 47.05 billion in the quarter Taiwan dollars (1.178 billion euros). In the same period the previous year it had recorded 70.2 billion Taiwan dollars. Operationally experienced a loss of 3.5 HTC billion Taiwan dollars (87.6 million euros).
its profit warning in July, the company had been cited declining gross margins and high production costs for its flagship smartphone HTC One as reasons for poor business performance. CEO Peter Chou was already at that time from the worst quarterly result in its history. At the same time he announced measures to boost profitability, such as reduced material costs and other operating improvements.
Last week HTC sold his remaining 25-percent stake in Beats Electronics back. It conceded it from the headphone manufacturer founded by U.S. rapper and music producer Dr. Dre $ 265 million. This could help him, at least not to have to close the current fiscal year with a loss.
almost all smaller smartphone manufacturer HTC has difficulties to compete against strong competition from Apple and Samsung . HTC was initially the favorite Android community, Samsung has now taken over this role. Delays in the launch of the HTC one, due to technical problems in the first quarter of 2013 resulted in a net profit shrank by 98 percent.
Meanwhile, HTC has also still struggling with declining sales figures out of the top model with delivery problems of the Mini One. Due to the elaborate designs there is a shortage of the cases, as an insider told Reuters explained.
[With material by Steven Musil, News.com, and Ryan Huang, ZDNet.com]
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