Yet another red quarter for HTC as revenue drops 44% year-on-year

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The newest HTC outcomes, for its Q2, affirm another loss-making quarter for the smartphone and VR headset maker, with the Taiwanese firm reporting revenue of NT$18.9 billion ($598 million) for the quarter versus the NT$33.0 billion ($1.07 billion) it made within the year ago quarter. That’s a drop of round 44 %.

HTC reported a lack of NT$4.2 billion ($133 million) in its second quarter, which ended June 30. The one shiny spot right here is that it’s much less of a revenue plunge than the corporate made in its Q1 when it was 64 percent down, yr on yr.

The corporate began shipping its Vive headset during the quarter, though it began taking pre-orders earlier within the yr. Whereas pre-orders of its new flagship smartphone, the HTC 10, solely started at first of the quarter, with a $699 price-tag for the device within the U.S. — however it evidently did not ship sufficient uplift to tug it out of the red solely in Q2.

HTC reported its first loss-making quarter again in October 2013, and ever because the firm has been struggling to show its smartphone fortunes round within the face of more and more fierce competitors and a squeeze on hardware revenue margins.

Since then it has diversified its enterprise by way of a wearable and fitness tech partnership with Under Armor, and a side-step into VR, in collaboration with games writer Valve — the latter an area the place there are far fewer competitions but in addition far fewer shoppers, given how early and unproven the tech but is and the paucity of compelling content material.

It’s definitely nonetheless early days for VR, however HTC is crediting the Vive VR rig with giving a lift to its model and contributing to a 27 % rise in revenues over Q1 this yr.

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The corporate is additionally touting “worldwide curiosity” and “gross sales momentum” for its HTC 10 smartphone, however isn’t breaking out any precise gross sales figures.

Neither is it breaking out Vive gross sales figures — saying solely that gross sales have been “robust” in the course of the pre-order interval within the latter half of its Q1.

That may tally with the notion of a pre-order spike from early adopters, whereas providing no proof to recommend indicators of any extra sustained shopper demand for VR, at this nascent stage.

For that, the VR business will want time to mature to persuade shoppers with compelling content. And, finally, show it’s greater than only a flash-in-the-pan nerd’s recurring fantasy.

Commenting on its Q2 in a press release, HTC CEO and chairwoman Cher Wang stated: “Within the area of 1 yr, we've reimagined the corporate, reclaimed our prime spot for innovation, and demonstrated strong execution throughout our main product strains. I consider that HTC has regained its revolutionary zeal and is wanting forward with confidence and ingenuity.”

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