HTC still struggles financially as year's end looms
In spite of favorable reviews for the One handset and the myriad of television ads currently making the rounds, things still aren’t looking up for HTC.
Bloomberg reports that the company just recently announced a posted net loss of about $101 million—that’s roughly $58 million more than analysts projected earlier this year.
It looks like even a cameo from Robert Downey, Jr. isn’t enough to put the Taiwan-based smartphone manufacturer back on the map. “HTC needs to figure out if it just wants to focus on the high-end market or the mid- to low-end segment,” an analyst told Bloomberg.
The company also can’t afford to make any more unprofitable business ventures, like the HTC First. The Facebook-endorsed phone was meant for the low-end market, but the company eventually stopped sellingit due to poor sales.
Company morale isn’t exactly doing so well either: earlier this year, Kouji Kodera, HTC’s chief product officer in charge of the overall product strategy left. The company also lost its vice president of global communications, as well as its global retail marketing manager, director of digital marketing, and product strategy manager—all vital positions to have to fill when your company is struggling financially.
HTC was one of the first to enter the smartphone scene with its Android handsets, and it even was on top for a quarter as the best-selling phone manufacturer in the US in 2011.
Now there are only reports of its inability to stay afloat. In the second quarter of this year, HTC came in ninth place for global smartphone marketshare, an almost 3-percent slump from the previous year. And the company continues to be trumped by its competitors, Samsung and Apple, which hold the first and second spot, respectively. Lesser-known manufacturers, Lenovo and LG, also are gaining in market share.
There is no telling what the end of the year will show for HTC’s overall numbers. HTC’s CEO, Peter Chou, famously said that he would leave the company if the One didn’t help put the company back on the map. Will this year’s numbers be his last hurrah?