Chat with us, powered by LiveChat

HTC vows to cut costs to revive profits

The HTC One.

The HTC One.

HTC is aiming to return to profitability by slashing its operating costs.

In a briefing held Tuesday, the Taiwanese company stated it expects fourth-quarter revenue within the range of NT$40 billion ($1.four billion) to NT$45 billion ($1.5 billion), in line with Bloomberg. Analysts queried by means of Bloomberg had forecast an average of NT$fifty two.2 billion ($1.77 billion).

HTC executives stated that the corporate plans to limit this quarter’s operating bills to around $340 million, 24 p.c lower than what was once spent last quarter. However, HTC failed to explain how or the place it might cut costs.

Two of the corporate flagship merchandise — the HTC One and the HTC One Max — have confronted problems. Supply considerations adversely affected the HTC One previous in the year, while the One Max has did not drum up much shopper demand.

“Their revenue driver for the quarter is HTC One Max, which is not an extraordinarily aggressive product,” Quanta monetary keeping analyst Dennis Chan instructed Bloomberg. “HTC One used to be a just right telephone however confronted supply chain problems. Now HTC One Max has no supply troubles, but it is no longer a robust product.”

HTC additionally plans to unlock less-expensive smartphones in a bid to grasp a wider audience.

“We’re having a look at broader merchandise on this quarter,” stated HTC Chief financial Officer Chiai-Lin Chang, consistent with Bloomberg. “We purpose for higher quantity into 2014 in order to give better profitability.”

Also within the 1/3 quarter, HTC suffered its first-ever quarterly loss, reporting a lower of $102 million.

CEO Peter Chou tried to paint a brighter picture in Tuesday’s income report.

 

 

Related More Articles : 

“Now we have delivered good progress in the 0.33 quarter with the introduction of HTC One Mini and One Max; now we have an HTC One for everybody,” Chou mentioned. “we’ve also launched the ‘here’s to change’ international model marketing campaign, declaring our position as the trade-maker difficult the status quo for the reason that crack of dawn of the mobile phone business, as well as our mission of continuous to carry trade into the palms of individuals around the globe.”

 

Author: Rohit Shetty

Share This Post On