Filed under: News | Misc


HTC Predicts Negative Operating Margins for Q3

HTC earned NT$1.25 billion profit in Q2, 2013 with NT$70.7 billion revenue and 1.5% operating margin. Taiwanese smartphone maker predicts its first ever negative margins (0% to -8%) and huge 30% decrease in revenue for next quarter.

Jul 30 2013, 6:48am CDT | by

11 Updates
HTC Predicts Negative Operating Margins for Q3
Getty Images

YouTube Videos Comments

Full Story

HTC Predicts Negative Operating Margins for Q3

HTC Predicts Negative Operating Margins for Q3

HTC posted its second quarter earnings results today with a forecast of its first ever operating loss in next quarter. HTC profits goes down every year but the Taiwanese smartphone firm predicted to see its first negative operating profits next quarter since its launch (2002). HTC misses analyst's forecasts for Q2 too. It earns very low net profit amount of NT$1.25 billion in Q2 with an EPS of NT$1.50 billion. This record low profit might be because of the delay of company's much-hyped smartphone, HTC One.

HTC predicts to gain NT$50bn to NT$60bn revenues in Q3 which are 30 percent less than NT$70.7bn Q2 revenue. Q3, 2013 gross profit margin is expected up to 21% which is 2.2% less than Q2. Gross profit margin for Q2 is 23.2 %. HTC's operating margin for Q2 is 1.5%, though less but not negative. As the company predicts a negative operating margin in Q3. It is expected to be in the range of 0% to -8%.

HTC CEO Peter Chou said, "My leadership team continues to focus on execution. We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H."

HTC has also planned a marketing blitz of $12 million to improve its sales. According to Reuters, Robert Downey Jr. will be the new face of company's ad campaigns that will help its efforts to survive against big names like Apple and Samsung that are currently dominating the smartphone market.


You Might Also Like


Sponsored Update

Update: 11

The most popular stories on BetaNews this past week: April 13 -- April 19

Source: BetaNews

It's nearly a week since Microsoft ended support for Windows XP, but there are still around a quarter of Avast customers who plan on sticking with the old dog a little longer. What is perhaps more shocking is the revelation that over one fifth of those surveyed had no idea that support was coming to an end! For those living more on the cutting edge, good news came for Chrome users who found that their browser of choice gained support for ...
Source: BetaNews   Full article at: BetaNews 8 hours ago


Update: 10

A deluxe phone for Android purists

Source: CNet

Google Glasses
The HTC One M8 Google Play Edition is uncommonly stylish, powerful, and advanced -- though sinfully priced. ...
Source: CNet   Full article at: CNet 22 hours ago, 5:28pm CDT

More From the Web

Update: 9

Android gains in US, basic phones almost extinct

Source: Channel News Asia

Fackbook Acquires WhatsApp For $16 Billion
WASHINGTON: The Google Android platform grabbed the majority of mobile phones in the US market in early 2014, as consumers all but abandoned non-smartphone handsets, a survey showed on Friday.The poll by Consumer Intelligence Research Partners found 53 per cent of new mobile phones activated by US customers were Android devices in the January-March period. Attendees visit th ...
Source: Channel News Asia   Full article at: Channel News Asia 23 hours ago, 4:02pm CDT

Update: 7

HTC has a secret weapon for taking on Samsung, and it’s not what you think

Source: BGR

The HTC One Skatepark At Selfridges - Launch Photocall
No matter how positive the reviews are for its products, HTC can't seem to break out from behind the shadow of Samsung. Without a veritable army of devices flooding store shelves, it's difficult for any phone maker to make an impact in the Android smartphone market. But HTC believes that by closing the gap on dedicated cameras, it can attract an even wider audience whi ...
Source: BGR   Full article at: BGR 1 day ago, 1:45pm CDT

Update: 6

Optical zoom all set to hit HTC handsets in 2015

Source: I4U News

The HTC One Skatepark At Selfridges - Launch Photocall
With so much competition in the mobile phone market, all manufacturers want to pack their high end handsets with the top quality features and similarly HTC al ...
Source: I4U News  Full article at: I4U News 1 day ago, 1:31pm CDT

Update: 5

HTC plans to own the selfie market and kill your DSLR

Source: PC World

The HTC One Skatepark At Selfridges - Launch Photocall
HTC talks the future of its Ultrapixel camera and ...
Source: PC World  Full article at: PC World 1 day ago, 1:09pm CDT

Update: 4

HTC hints at DSLR-like optical zoom in the next 18-24 months, wants to own the selfie market (Vodafone Social)

Source: Techmeme

The HTC One Skatepark At Selfridges - Launch Photocall
Vodafone Social: HTC hints at DSLR-like optical zoom in the next 18-24 months, wants to own the selfie market  —  HTC talks camera tech: DSLR-destroying optical zooming ‘18 months’ away  —  The HTC One (M8) is here, and even though we're only in April, it's already a strong contend ...
Source: Techmeme  Full article at: Techmeme 1 day ago, 12:55pm CDT

Update: 3

Next Google Nexus phone may come with a budget price

Source: Tech Radar

Google Glasses
Google is known for offering hardware direct to customers at lower-than-most prices, but the company may take it one step further in offering a budget Nexus phone. That's the word coming from a Chinese publication that reports on "everything MediaTek," but more on that thread in a minute. The main hook here is that Google's next Nexus handset could cost as low as $100 (about £59, A ...
Source: Tech Radar  Full article at: Tech Radar 1 day ago, 12:51pm CDT

Update: 2

My week with the Google Play Edition HTC One

Source: The Verge

Google Glasses
I like things pure. I don't put sugar in my coffee, there are no bumper stickers on my car, and I typically don't put a case on any smartphone I own. Google's special Google Play Edition smartphones have always appealed to me: I can get the best hardware in the Android world, without any of the software garbage that manufacturers typically add to the platform. But that doesn't always make for the best option: in the case of ...
Source: The Verge  Full article at: The Verge 1 day ago, 12:29pm CDT

Update: 1

9to5Toys Last Call: iPad Air/mini $50 off, Denon AV receiver w/ AirPlay $200, Dyson/Fellowes home deals, more

Source: 9to5Mac

Amazon Announces Set Top Video Device
Be sure to follow 9to5Toys to keep up with the best gear and deals on the web: Twitter, RSS Feed,Facebook, Google+ and subscribe to the new Safari push notifications feature. Today’s can’t miss deals: Last Call updates: Klipsch S4A II in-ear headphones $50 shipped (Reg. $100) Sports Authority coupon: Save 25% online/in-stores on a single item. Some exclusions apply. Nest Learning Thermostat (2nd gen) $224 shipped ( ...
Source: 9to5Mac   Full article at: 9to5Mac 1 day ago, 12:16pm CDT

Shopping Deals


<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
Sumayah Aamir (Google+) has deep experience in analyzing the latest technology trends.




blog comments powered by Disqus

Latest stories

Nike is Not Shutting Down FuelBand, But Facing Downslide in Wearable Devices
Nike is Not Shutting Down FuelBand, But Facing Downslide in Wearable Devices
Nike has not stopped its FuelBand production. However, it seems to be facing a downslide in the department of wearable devices.
Peaches Geldof to be Laid to Rest on Easter Monday
Peaches Geldof to be Laid to Rest on Easter Monday
Peaches Geldof is to be laid to rest soon after her sudden death due to unknown causes. Some say that after being incinerated, her remains will be spread in the soil surrounding her family residence. On the other hand Peaches Geldof may be buried.
Padma Lakshmi Shows Bad Taste in Fashion
Padma Lakshmi Shows Bad Taste in Fashion
The otherwise slim and smart Padma Lakshmi showed bad taste in fashion with her latest ensemble. The midriff baring look simply did not make her appear as presentable as she ought to have been.
Idris Elba Welcomes Son Winston Elba
Idris Elba Becomes Dad Again
British actor Idris Elba has become a dad again. Elba’s girlfriend Naiyana Garth gave birth to a baby boy, named Winston Elba, on Thursday.

The Hottest Photos of Victoria's Secret Fashion Show 2013