HTC’s profit slump continues for second quarter

HTC’s profit slump continues for second quarter

HTC has reported a consecutive quarter of losses as profits continue to fall.

The manufacturer has released its financial results for Q3 2015, reporting a net loss of NT$4.48 bn (£90.8m). The results mark HTC’s second quarter of losses, after its streak of profitable quarters came to an end in Q2.

HTC’s third quarter saw revenue fall to NT$21.40 bn (£433m) compared to the previous quarter. The findings follow the manufacturer’s decision to target profitability instead of volumes. The company explained that it was rethinking its strategy to reverse its profit slump.

HTC announced this strategy shake-up at its Q2 results, with Chialin Chang, CFO and president of HTC global sales, explaining they will do things differently.

He said: ‘First of all, we're actually rethinking about what's the right smartphone strategy. As you can see, a lot of vendors basically treat smartphone as the entry point for mobile internet. So to us, it's a game. Obviously people try to grab subscribers through the more volume of smartphone. So it becomes a very intensified competition.

 ‘HTC have a few advantages and we're going to have to play in terms according to our strengths. So we're going after profitability instead of -- we're going into the profit share and profitability instead of the volume share. That's something we're going to do it differently.’

This change in strategy echoed CEO Cher Wang, who previously revealed plans to move HTC away from the mobile market.

She claimed there was a ‘slower demand for high-end android devices’, explaining that the company will look to ‘aggressively develop’ the business outside smartphones. Wang explained that HTC would seek new opportunities lie within the connected lifestyle market.

 

 

 

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