HTC has announced further losses at the business recently declared ‘valueless’ by analysts, though the financial results were actually up on earlier estimates.
In its most recent set of quarterly results, HTC lost NT$4.48 billion (€128 million) as its operations continued to be hit on all fronts. In the same time last year, the company posted a marginal profit, with revenues almost halving (€1.14bn down to €585m) over the last 12 months.
The challenge of lower-end Android devices saturating an already highly competitive field has created an environment in which the Taiwanese company has really struggled for the past half decade.
Last August, the company’s market valuation actually dropped below its cash reserves, as investors looked toward rival companies for value – all despite the company making the truly impressive HTC M8 and M9 in recent years.
Despite the positive reviews and reception of its flagship One series of late, competition from Apple (iPhone), Samsung (Galaxy S series), OnePlus and Sony (Z series) has created a truly difficult high-end marketplace, with only the former a real winner of late.
At the lower end, a raft of Android manufacturers have exploded onto the scene since HTC last ruled the roost. Samsung overtook the Taiwanese company as top dog in 2010.
Samsung’s domination in marketing spheres, HTC’s inability to match the specs of other premium providers, and the struggle to maintain a grip on the lucrative Chinese market all did for the smartphone company.
In August, the company confirmed plans to cut 15pc of its workforce, with plans to “diversify beyond smartphones.”
“We need a flexible and dynamic organisation to ensure we can take advantage of all the exciting opportunities in the connected lifestyle space,” said CEO Cher Wang at the time.
Main image via Karlis Dambrans on Flickr