Mobile phone maker HTC reported a profit in second quarter earnings the first profit in over a year, thanks to a cost-cutting strategy and a new handset offering.
The company's big saver was the handset, as it enabled them to save millions in manufacturing costs. From a year ago, the company increased profit by 80 percent, no modest feat for a company with several tough competitors in the market.
HTC's profits reportedly climbed to $75 million (2.26 billion New Taiwan dollars) for the second quarter. The company, based in Taiwan, beat analyst predictions of NT$2.09 billion, but HTC rose to the occasion with new devices and marketing campaigns. Others in a separate poll predicted 2.17 billion.
The HTC One M8 was one the main reasons of the extra infusion of profits. The product hit shelves in March and received fanfare for its sleekness.
HTC's growth has mainly been in high-end smart phones, but as Apple and Samsung have begun to dominate the market with a fierceness to be reckoned with the company has faced a major slowdown in sales.
Smartphone global sales growth will likely be somewhere around 23 percent for 2014, compared with 39 percent last year, according to research. IDC pegged the average growth from 2013 to 2018 at 12.3 percent.
This puts major pressure on high-end device makers to establish unique brands, which some say HTC has struggled with in recent times. New types of feature rich phones popping up in the Asian markets, specifically China, along with the new iPhone release will further put strain on the company to innovate quickly. Consumers will be looking for quality and lifestyle image.
