HTC 10 fails to deliver in the latest quarter
After consecutive quarterly losses, HTC was relying on its two high-end products – the HTC 10 and the Vive virtual reality headset. The company just posted its Q2 2016 financial results, and things are not looking good for the Taiwanese manufacturer.
The picture below hardly shows any recovery. The revenue increased from NT$14.8 to NT$18.9 billion and the company’s operating margin increased from -32.4 to -22.5 percent. Thus, leading to a slight decrease in the company’s losses, from NT$4.8 billion in Q1 2016 to NT$4.2 billion in Q2. Also, the company has improved on its Q2 2015 NT$5.1 billion loss. Still, this is the fifth consecutive quarterly loss for the company.
The year-on-year revenue decreased by 42%, from NT$33 billion in Q2 2015 to just NT$18.9 billion in Q2 2016. These are significant losses in quarters, which were once considered to be the strongest for the Taiwanese manufacturer, as this contains the sales of HTC’s latest flagships.
HTC 10, despite being a good flagship, failed to excite. There are number of factors to be considered here. For instance, launching it on the same day Samsung S7 was launched, lack of out-of-the-box features, high price tag, and small advertising budget.
HTC seems far more bullish about its Vive virtual reality headset and relied too much on it. Despite of selling in very small numbers of sales right now, the company remains focused on building a strong ecosystem that will hopefully pay off in the future. Also, the business added new members to its $12 billion VR Venture Capital Alliance last week and is keen to talk about expansion across the globe.
Though, HTC has other devices, the dream of HTC making a comeback, is looking far off from being a reality for now.