The struggling Taiwanese smartphone manufacturer encountered more bad news today as first quarter profits for the company dropped an astounding 98 percent since the same time last year, according to Bloomberg today.
Still making money
In spite of the dismal report, HTC is still miraculously turning a profit of $2.8 million. But in comparison to previous years, the total amount is only a fraction of what the company used to make.
It’s the One’s fault
The highly anticipated HTC One , the new flagship smartphone for the firm, was expected to launch in February 2013. Preliminary reviews of the device were high and the phone was praised for its high attention to styling, strong feature set, and overall excellent styling.
Many saw the One as the smartphone that would put HTC back on the map and back in business. But due to some vendors putting HTC further down the priority list for shipping components that were crucial for assembly, the new phones won’t be available until late April or possibly pushed back even further.
The delay of the launch of the HTC One did nothing to bolster the flagging confidence of consumers and the industry regarding the ability of the company to remain competitive with the likes of Samsung, Apple, Android, and Motorola.
Paying the price
The postponement of smartphone launches aren't unheard of, and this happens on occasion even to the best of the smartphone manufacturers, but HTC’s precarious position makes any delay a virtual disaster.
Dennis Chan, an analyst at Yuanta Securities Co. observed:
“These numbers show the production shortage really is that bad, and my sense is that it won’t get much better in the second quarter because many of those issues continue. For smartphones, timing is everything and the delay means they lose that timing.”
You’re my only hope
As Princess Leia pleaded to Obi Wan Kenobe, in the film Star Wars- Episode IV, that he was her only hope, so it will probably be for the One as the only hope for bringing HTC back from permanent oblivion.
If HTC’s One becomes a major blockbuster hit for the mobile phone manufacturer, it may help to establish it as a viable alternative to its competition. But because of its late launch, this scenario is becoming increasingly unlikely.
Can HTC turn it around? This will depend on how many they sell in the first month of its release.
Via Bloomberg
via Examiner National Edition Gadgets & Tech Channel Articles http://www.examiner.com/article/htc-s-income-drops-off-a-cliff-by-98-percent-delay-of-htc-one-to-blame?cid=roadrunner