It always gets worse before it gets better, seems to be HTC's new motto. The company announced its second loss in three quarters on Monday, but promised that next quarter's numbers will improve based on sales of its new flagship smartphone, the HTC One M8.
Analysts had projected a loss of only NT$1.71 billion or approximately $52 million USD for HTC in the first quarter of 2014, but the reality was much worse. HTC reported a loss of NT$1.88 billion or $62 million USD on Monday. Revenue also took a hit, falling to NT$33.1 billion, down from NT$42.8 billion during the same quarter last year.
In spite of these dismal numbers, HTC seems confident that it will announce a triumphant second quarter profit this year based on the projected success of its new flagship, the HTC One M8. So far, the M8 has received stellar reviews from tech pundits and Android fans alike. Its superior specifications and high-end build quality put it on the same level of the leading Android flagship, the Samsung Galaxy S5. In fact, some early reviewers of the M8 preferred it to the Samsung Galaxy S5.
HTC expects the M8 and its mid-range Desire 816 smartphones to drive sales in the second quarter of 2014. Strong M8 sales could propel HTC into the black once again and prove that a quality Android smartphone from HTC is still desirable.
"The company expects to see positive trajectory of its revenue in April from March and forecasts quarter-on-quarter revenue growth in the second quarter," HTC said in a statement.
HTC is determined to fight its fate and re-assume its place among leading Android smartphone manufacturers. HTC often emphasizes design over awe-inspiring high-tech features. While this has hurt them in the past, HTC seems to have found a good balance with the HTC One M8.
The M8 maintains the solid aluminum unibody and sleek high-end feel, but it also features competitive specifications, which in some cases, rival those of the Samsung Galaxy S5. Although it may not be waterproof or feature a fingerprint sensor, the M8 seems to hit every other mark on the wish list.
The question isn't is the M8 good enough? but rather, will customers think so?
