HTC hits 13-year revenue low in 2017

HTC didn’t finish 2017 stronger than it started. Instead the company stumbled to the finish line, generating a low for the year in terms of revenue. Somehow HTC managed to not capitalize on holiday shopping when most companies, especially in the mobile industry, experience a surge in sales.

While we don’t know about expenses, HTC generated just $135.5 million in revenue for December. No other month this year was as bad for the Taiwanese company. And it capped off what turned out to be a 13-year low for HTC. The company generated $2.1 billion in revenue for the whole year, a number that competitors in the mobile industry can profit for a single quarter or even just one month.

The company isn’t as big as its rivals, but the amount of revenue it generated every month this year is on the underwhelming side no matter who you view it.

Overall, HTC’s revenue slipped by nearly 21 percent compared to last year.

A 2018 flagship is in development by HTC, so don’t expect any sudden bad news yet. The U12 should arrive this spring with a modern design and high-end specifications. The problem, however, is that companies like Samsung and LG can already do that. HTC needs to figure out a way to stand out in a crowded field.

All hope is not lost for the company, but HTC needs to pick itself up and make wise decisions in 2018. Our recommendations include stripping the lineup down to one or two new phones per year and selling the virtual reality business to Valve or another buyer. If the year doesn’t improve upon past results, HTC should also consider selling its entire mobile division.

It’s impossible for the company to remain intact if revenue doesn’t rise while costs stay under control. We wish HTC well as it navigates what’ll be a bumpy road ahead.