HTC has released its quarterly earnings report for October-December period and the results are disastrous.
The Taiwanese company posted its worst quarter to date with revenue dropping down to $540 million after a net loss of $337 million (after taxes). Here is how the results stack up:
- A quarterly drop of 29% in revenue.
- Operating loss of $330 million in Q4
- Quarterly net loss of $337 million after taxes.
HTC, in a press release, told that the reasons behind this were market competition, product mix, pricing, and recognized inventory write-downs, pretty much everything so to say.
Apart from those, HTC is continuously facing stiff competition from smartphone market giants like Apple, Samsung, and now Chinese brands. The company tried its luck in the VR headset business by releasing Vive Pro and Vive Focus and received a good response at CES, so it’s not all bad.
However, analysts are skeptical about profits from HTC’s investment in VR, as a previous attempt has somewhat failed to diversify HTC beyond the mobile market.
There was one other positive take from the press release which HTC kept talking about and that was its deal with Google. HTC and Google came to terms with a $1.1 billion deal that gave Google the control of HTC’s hardware business. HTC says that the money will be spent on “emerging technologies” to focus on a long-term growth.
That deal happened in January plus HTC U11+ was released as well, so there is good news for HTC but the results of the financials will be reflected in Q1 of this year.
Via GSM Arena