5/7/2013 11:49:43 AM
April a cruel month for HTC
HTC's sales problems have continued, as the Taiwanese smartphone maker saw revenues decrease in April by 37%.
The company said sales were NT$19.59bn (£427.2m) last month, down by more than a third on 2012. HTC recently said its margins will be much slimmer during the next three months, as it spends heavily to turn around its falling sales. Its gross profit margin will be between 22% and 24% and sales are predicted to hit NT$70bn (£1.52bn) for the three months to the end of June. While this would be a marked improvement on its first quarter sales of NT$42.8bn (£933.3m), it would be down on its second quarter 2011 sales of NT$91bn (£1.98bn).
HTC CEO Peter Chou told analysts: 'We're improving the HTC marketing execution. It's the first time since HTC developed its brand that we are really integrating brand, product and marketing all together.'
The pressure on HTC and its new One flagship device to succeed was illustrated in its first quarter results, which plummeted 98% during the past 12 months to NT$85m (£1.8m). The One got off to a rocky start, with the manufacturer delaying its launch because of a component shortage.
Author: Graeme Neill