Last month HTC released their financial results for the first quarter of 2013 and the numbers were unpleasant reading. In a recent conference call, HTC sought to put some context to the numbers for the benefit of investors and analysts. CEO Peter Chou acknowledged the problems supply chain delays had caused for HTC and the release of the HTC One. Nevertheless, he believes HTC ultimately had a successful launch of the HTC One and looks forward to sales of about 10 million units during 2013. Most of that will take place during the final three quarters of the year as analysts from CLSA Asia-Pacific Markets project only 750,000 units were sold during the first quarter. For comparison, Samsung is projected to to sell 60 million Galaxy S 4 units.
While HTC maintained profitability during the first quarter, the margin was not very large as revenues slid to NT$42.8 billion ($1.45B USD). However, with sales of the HTC One in full swing, those numbers are expected to rebound to the NT$70 billion ($2.37B USD) range during the second quarter.
It appears many people think HTC has turned things around. Both HSBC and Daiwa upgraded their ratings on HTC, partly due to all of the positive reviews of the HTC One. Investors seem to agree as the stock price has been rising ever since release of the flagship device. Analysts also point to the recent partnership with Facebook to bring the HTC First to market as a positive step for HTC. Although the HTC First is more of a marketing move for the company, it is evidence the company is taking several small but sure steps as it regains its footing.
What do you think – has HTC turned the corner?
source: CNET
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