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HTC Reports Profit in “Challenging” Q3

by Jacob Kleinman | October 31, 2014October 31, 2014 9:00 am PDT

HTC One M8 vs E8-1

HTC finally managed to turn a profit earlier this year after releasing the One (M8), reporting Q2 revenue of NT$65.06 billion. Now, three months later, the company has posted another profitable quarter, though revenue for the Taiwanese phone-maker dropped significantly to just NT$41.9 billion in Q3 2014. HTC just barely eked out a profit for the quarter at NT$0.6 billion after tax.

The company’s gross profit margin was up slightly, jumping to 22.9 percent from 22.2 percent in Q2 and 20.4 percent 12 months ago. Operating margin was down significantly though, dropping to 0.4 percent from 3.7 percent in Q2. It’s possible the company could turn things around by the end of the year thanks to the newly announced Desire EYE, One (M8) EYE and RE Camera, though at the moment it’s unclear if it can milk out as much profit from those devices as it could from flagships released earlier in the year.

“This challenging quarter saw HTC step up to the plate, maintaining profitability in the face of an intensely competitive environment,” HTC CEO Peter Chou said. “By providing balanced product offerings across all major regions and increasing the buzz around the brand, our partners have been able to reach into established and emerging markets, especially with the Desire range.”

HTC remains hopeful though, predicting that momentum for the One (M8) could continue through the holiday shopping season. The company is predicting an increase in revenue for Q4 anywhere between NT$43 billion and NT$47 billion. HTC can’t rely on the M8 forever though, and the company’s immediate future will likely depend on the Desire EYE, RE Camera and sales of the brand new Nexus 9.

htc q3 graphs

HTC

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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