HTC profits fell to a new low in Q1 of 2013. The latest HTC earnings report shows that the company’s total revenues reached NT$42.8 billion with net income after tax shrinking to NT$85 million ($2.8 million USD), a 98.3% decline in profits from the $173 million which the company reported for Q1 of 2012.
HTC’s earning’s for Q1 were expected to come in lower than last year’s numbers, but the shortage of camera components which caused the delay of the HTC One helped push the company’s quarterly earnings over the cliff. Originally, the HTC One was scheduled for a global launch in mid-March, but HTC was only able to manufacture enough handsets for a limited retail launch in the UK, Germany and Taiwan. HTC has not confirmed if the HTC One camera module supply issues have been resolved, but the device is scheduled to launch in the US, Europe and Australia before the end of April.
These numbers show the production shortage really is that bad, and my sense is that it won’t get much better in the second quarter because many of those issues continue. For smartphones, timing is everything and the delay means they lose that timing.Dennis Chananalyst at Yuanta Securities Co.
We expect HTC’s number for Q2 to show a significant improvement, but the full effect of the HTC One launch will probably not be visible until HTC posts in Q3 earnings report later this year.
Will HTC be able to get back on its feet with the help of the HTC One or will the device be overshadowed by the impending launch of the Samsung Galaxy S 4?