HTC today released its second quarter results for 2013, managing a modest quarterly revenue of NT$70.7 billion, equating to a gross margin of 23.2% and operating margin of 1.5%. It’s looking like the HTC One is continuing to help the Taiwanese manufacturer along in this highly competitive smartphone market.
While the present situation for HTC looked good, the outlook for the next quarter looked less than fantastic. In numbers, the next quarter is forecast to have a gross profit margin of between 18% and 21% and an operating margin of 0% and -8%. What this means in layman terms is that HTC will likely be making a loss first time in its history in Q3. This isn’t to say this should be immediately considered bad; it could mean that HTC is continuing its research and development effort unabated, hoping to capture market share which it will utilize in later months with new products. Either way, it will be an upward battle for HTC who is beginning to show some cracks while following a similar strategy to Samsung.
So how does HTC plan on offsetting these figures? Through continued sales of the HTC One which it says has given it a fair amount of market share, particularly in China, and to expand its mid-range products. Hopefully this will all pay off in Q4, or whenever the HTC One Max is released.
What do you think about the news of HTC’s profits forecast? Think it can get back in the green? Let us know what you think in the comments.
Source: HTC via Android Central
