HTC plunges into the red with preliminary Q2 earnings

HTC plunges into the red with preliminary Q2 earnings

HTC has a revealed a net loss of NT$8.03bn (£167m) after releasing its preliminary results for Q2 2015.

The findings are a sharp contrast to HTC’s Q1 results, which represented a fourth consecutive quarter of profits for the company. The manufacturer lowered its revenue outlook for Q2, with its latest results narrowly managing to achieve its new target.

CEO Cher Wang explained that a ‘slower demand for high-end android devices’ led to the company changing its revenue expectations.

HTC initially expected to post earnings of NT$41.5bn (£870m) to NT$45bn (£944m), but greater competition, increased operating costs and weaker sales in china prompted HTC to reduce its target.

The company lowered its expectations to NT$33BN (£686m) to NT36bn (£755m), with Wang announcing a step away from mobile to strengthen HTC’s smartphone division.

She said the company will look to ‘aggressively develop’ the business outside smartphones, explaining that new opportunities lie within the connected lifestyle market.

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