Thursday, July 31, 2014

HTC predicts Q3 will continue trend of sales-decline

After Q2 brought a sliver of hope for HTC, with the company finally turning a profit after a long time, it seems this was only short lived, and according to their Q3 forecast, there is yet to be a light in the end of the tunnel.

The main cause of Q2's profits were the HTC One M8's release and all its by-products and variations, and as the flagship is no longer the new guy on the market, it seems its sales-push is coming to an end.

Without its biggest driving force, HTC will have a hard time making a profit, which is exactly what the company's CFO (Chief Financial Officer) tells us. According to him, as a cause of the sales-decline, the company will be forced to halt most marketing and sales pushes, instead staying quiet and trying to pass Q3 without too much damage. The company will re-evaluate its marketing strategies, but in contradiction to the similarly hard-sales-stricken Microsoft, will not be laying off workers. Here's some of the CFO's statement:


Some of our products, after the initial excitement, have settled at a lower level. But the good thing is it is stabilized," Chialin Chang claimed. "For HTC, to start gaining market share is important. We have gone through a transition period in 2013

Profit is predicted to be around $1.4-1.56 billion, probably closer to 1.4, a steep decline from Q3 2013 which got $1.6. What do you think, is this the end? 

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