HTC posts net profit of US$75.6m for Q2

3 Jul 2014

HTC is showing signs its bank balance is looking a little healthier after the release of its latest flagship phone and cost-cutting measures saw it post a net profit of US$75.6m for the second quarter of this year.

The Taiwanese manufacturer has improved on its last financial showing having posted a loss of US$1.8bn in the previous quarter and slightly better than analysts’ predictions which foresaw a profit of US$70m, according to the Wall Street Journal.

The company has been slipping in the rankings of Android-based smartphones in recent years, particularly given its Chinese rival Xiaomi has established itself as the fastest-growing smartphone producer using the Google operating system.

It is now pinning its hopes on its latest flagship phone, the HTC One M8, and while it has received rave reviews from critics, still lags behind its slightly more affordable counterparts.

However, the company has also increased its sale of lower-end smartphones into developing markets as well as outsourcing a significant portion of its production in a bid to lower costs, which it seems has seen the company post a profit.

And yet, there are fears that this result might not be an indicator of future success as the company will soon have to deal with the launch of Apple and Samsung’s latest launch of products which will add significant competition to the already narrow market.

Colm Gorey was a senior journalist with Silicon Republic