HTC’s revenue has spiraled downwards for the past four quarters. The question is: will the new HTC 10 and Vive revive the Taiwanese manufacturer from their unfortunate profit trends?
This year they lost $148 million between January and March. This is Taiwanese dollar we are talking about, but the loss is considerable nonetheless.
HTC now struggles to transform the company into a smaller, more productive one as it made $14.8 billion in the first quarter, a worrying 64-percent drop compared to last year’s first quarter when they made $41.5 billion.
Back to HTC 10 and Vive. HTC 10 is their latest, one of the most powerful smartphones in the world and Vive is a virtual reality headset.
The company’s hopes are placed in the two high-tech products as integral profitability parts.
So far the reviews for the HTC 10 smartphone talk about flawless UI experience, impressive audio, and capable camera, but criticize the expensive sim-free module and its battery performance.
The HTC Vive also has Judas trading it for the Rift because of its enormous $800 price tag and pretty uncomfortable gear. In all fairness, everybody does mention its intuitive controls and an incredible VR experience – one of the best, if not the best on the market.
We’re crossing our fingers for the Taiwanese manufacturer and will wait to see better results when their reports including the HTC 10 and Vive VR sales will come in.
How will HTC otherwise recover? They, of course, want to reduce costs and raise sales by “trimming expenses” as Chialin Chang, the CFO of HTC put it. They sold some property and downsized their operations.
HTC is not the only smartphone manufacturer to suffer sales loss. Apparently, as it looks for other market opportunities, teaming up with SAP, Apple giant is also feeling the smartphone market saturation.
It’s almost an intuitive situation; everybody has a smartphone these days, and their price doesn’t make them so readily available, especially in times of financial crisis. Maybe with NASA’s new patents release in the public domain, smartphones and VR reality producers will pick up on some new technology and make better and more affordable terminals.
Until then we wonder if the new HTC 10 and Vive will bring a significant change to the HTC latest crash.
Image source: Wikimedia