(Source: Epic Fail)
OEM looks headed to a big loss despite modest sales of the HTC one and launch of the One Mini

The chief executive of embattled Taiwanese smartphone maker HTC Corp. (TPE:2498), Peter Chou, tried his best to find the silver-lining to his company's latest financials report. He remarked, "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."

The HTC report was a double feature, confirming the miserable Q2 2013 results, and predicting an even worse Q3 2013.

In Q2, HTC took in $70.7B TWD ($2.35B USD) for the quarter versus a Bloomberg analyst consensus of $72.8T TWD ($2.42B USD).  Net revenue (profit) was $1.25B TWD ($41.5M USD), well short of the $2.17B TWD ($72.0M USD) Bloomberg-surveyed analysts predicted.

HTC quietly brilliant
HTC CEO Peter Chou's company is unravelling. [Image Source: Reuters]

HTC's memo confirms those numbers, and also makes mention of the current executive shuffling.  In the quarter there were a number of shifts:
  • Jack Yang : President of HTC South Asia (new)
    Apple, Inc. (AAPL) iPhone Division Manager Southeast Asia
    Lennard Hoornik

  • Sirpa Ikola -- Senior Marketing Director South Asia (new)
    "Builder Evangelist" at Nokia Oyj. (HEX:NOK1V)
  • Lorain Wong -- VP of Global PR (new)
    VP of marketing at Asian telecom Pacnet)
    VP of marketing at Qwest Corp.'s (CTQ) Qwest Asia
    AT&T, Inc. (T) director of partnership and marketing
    Jason Gordon
  • Jason Mackenzie -- President of HTC Americas (returning)
    HTC VP of Sales and Marketing for Americas 2007-2010
    HTC Americas President 2010-2011
    HTC Global Sales Strategy President 2011-2013
  • Mike Woodward -- VP of Emerging Devices (returning)
    HTC Americas President 2012-2013
    AT&T VP of the carrier's consumer wireless device and accessory portfolio
But the company doesn't sound very optimistic about sales.  It estimates they could sink another 30 percent in Q3 2013, forecasting revenue between T$50B ($1.67B USD) and T$60B ($2.00B USD).  That terrible forecast was a shocker to analysts who predicted T$72.7B ($2.43B USD) in a survey of 21 analysts by Bloomberg, and a substantial drop from last year's Q3 revenue of NT$70.2B ($2.34B USD).  A loss seems likely for the quarter, given the razor-thin profit margin in Q2,

HTC -- once the top U.S. smartphone seller -- has been on a downward slide for eight straight quarters now, with little relief.

HTC One sales appear to have seriously slid in June, after a May surge.

Its 1080p "One" flagship phone received strong reviews and saw modest sales, but the rest of HTC's lineup has seen non-existent sales.  The launch and shipments of One smartphones was delayed by lawsuits and part shortages.

Likewise, the One Mini is late in arriving on the market.  To its credit, the HTC One Mini looks like a substantial step up from the current Galaxy S 4 Mini.  But the Galaxy S 4 Mini is out now -- and Samsung's rumored to upgrade it around the time of the HTC One Mini's August launch.

Sources: HTC, Bloomberg

"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer

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