Print 6 comment(s) - last by spread.. on Jul 31 at 1:57 AM

  (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

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By hybrid2d4x4 on 7/30/2013 11:07:11 AM , Rating: 3
"To its credit, the HTC One Mini looks like a substantial step up from the current Galaxy S 4 Mini."

Not from where I'm standing. The only things it has going for it are display, build quality and camera. In everything else, the S4m is better. But even then, that may as well be moot because the One-m isn't noticably smaller than the regular One, and has about the same height(length) as 4.7" phones. The overall size of the phone is nowhere near as compact as the S4m or the recently announced Moto X mini. I like HTC but their current lineup right now is one huge phone and another huge phone that's 5mm smaller.

By hybrid2d4x4 on 7/30/2013 2:03:47 PM , Rating: 2
*Moto DROID mini, not Moto X
121.3 x 61.3 x 8.9 mm versus the HTC's 132 x 63.2 x 9.3 mm

For people interested in a "mini" phone, this one is much more newsworthy.

By spread on 7/31/2013 1:53:47 AM , Rating: 2
The HTC One Mini has the most intuitive and streamlined user interface the management team has been asking for.

The HTC One Mini also has the best and most up to date software on the market for the next 3 months.

The HTC One Mini has removed all sorts of pesky features that customers have trouble with like all the strange and endless modifications of the Android OS that can cause headaches, dizziness and nausea. Or changing the OS, which is a risky procedure not covered in warranty because in some rare cases can lead to death.

The HTC One Mini is the best and best phone of the market and it's a shame customers haven't realised the things that HTC is trying to accomplish.

I'm still waiting
By bug77 on 7/30/2013 12:27:57 PM , Rating: 3
The real test for me is support. Will One get updates past Android 4.3 or will HTC (once again) "determine that the best user experience" is not to update?

RE: I'm still waiting
By spread on 7/31/2013 1:57:42 AM , Rating: 2
The HTC One Mini has been specifically designed for Android 4.2 in mind. Changing the operating system is not recommended because it alters the user experience and voids warranty. In some cases changing the OS has proven to damage finely engineered HTC quarterly financial reports.

By keeping the OS and buying a new phone in 3 months for the software update you are part of the carefully designed HTC experience that you will find satisfies you in ways that only HTC branded products and services can.

one mini
By piroroadkill on 7/30/2013 10:12:33 AM , Rating: 2
"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 more expensive than and a step down from the Xperia SP. Oops.

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