HTC profits and sales slump yet again in Q1
Profits at HTC slumped yet again with component shortages for its new flagship HTC One smartphone hampering its hopes of regaining lost market share.
According to the struggling Taiwanese manufacturer’s first quarter 2013 results, sales decreased to NT$42.8 billion (£932m) with profits dropping to just NT$85 million (£1.85m) – well below estimates.
The HTC One had originally been pencilled in for a March release, but problems with HTC’s supply chain meant there was a shortage of components such as metal cases and cameras. It is believed that part of the problem was caused by the fact that the company is no longer considered a tier one customer due to its fluctuating orders in the past year.
HTC One delays
The HTC One is widely regarded as the company’s last chance of reclaiming lost market share and remaining competitive with Apple and Samsung at the top of the smartphone arena while also fending off renewed attempts from the likes of RIM, Nokia and Sony.
It is powered by a meaty Qualcomm Snapdragon 600 quad-core 1.7GHz processor, 2GB of RAM and runs the latest iteration of Android, version 4.2 Jelly Bean. It is cased in what HTC claims is the world’s first full zero-gap aluminium unibody and boasts a sizable 4.7-inch full HD screen and support for LTE networks.
The figures will increase the pressure on CEO Peter Chou, who has claimed he will step down if the HTC One isn’t a success. However, the device has been well-received by critics while there was some good news for the company last week when one report claimed it was still the third largest smartphone manufacturer in the UK, controlling 9.1 percent of the market.
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