HTC’s Q1 2014 Report misses estimates, posts net loss of $62 million

HTC may have been doing things right this year, but the latest unaudited report for Q1 2014 is more disappointing than earlier predicted. The sales and the revenue figures are much lower than what analysts predicted earlier this year and the company posted a loss of $62 million for the first three months of 2014.

HTC had already warned investors about the bad performance of the company for Q1 2014, however it looks like even the company expected better results. Analysts predicted the company to post revenues of around $1.12- $1.18 billion for the quarter; however the actual revenue posted was only $1.09 billion. Last year’s Q1 was much better for the company as it made $2.4 million in profit with revenue touching the $1.4 billion mark. This also makes this the second loss making quarter for the company in the past three quarters, with Q4 2013 being the only profit making time for the Taiwanese manufacturer.

However, it has to be noted that the company made no new announcements early this year and hence the demand for its products have been relatively stagnant. HTC One M8’s announcement was made just a few weeks back, so these results don’t really reflect the effect of the latest flagship on the company’s overall demand.

But the company expects much better results for the next quarter especially seeing the demand for its flagship HTC One M8 and the budget minded Desire 816. While it’s no surprise that the new HTC One was received well by users, the demand for Desire 816 especially in China is a bit shocking. HTC is not really known for its budget devices, and hence, Desire 816 could drive the growth of the company in that segment of the market.

“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 the statement. “Sales will be driven by demand for its new products, including the M8 and mid-tier Desire 816,” added the company said.

So if HTC manages to maintain a steady supply of HTC One M8 this year, things could be much better for the company. Last year’s supply crisis hurt the company real bad, and a similar chaos this year could be the difference between profit and loss. But for now, things are looking good for the Taiwanese company, and hence, it’s quite possible that the profit and the revenue grow significantly in the coming quarters.

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About the author

Joel is an experienced blogger who covers all kinds of news relating to tech. He is a huge fan of Android and can be seen playing around with his phone in his spare time.