Losses continue for HTC in fourth quarter of 2015

February 3, 2016

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HTC Logo (PRNewsFoto/HTC)

HTC announced their fourth quarter financial results for 2015 and the financial straits they find themselves in continued as the year closed out. For the quarter, HTC reported revenues of NT$25.7 billion ($768 million USD) and a gross margin of 13.9%. After expenses are considered, HTC had an operating loss of NT$4.1 billion ($122 million USD) with an operating margin of negative 16.1%. Considering the fourth quarter is usually a strong one for companies thanks to holiday sales, HTC's loss for the quarter is a troubling sign for the smartphone manufacturer.

For the fourth quarter, HTC's revenues increased from the third quarter's $660 million while the operating loss of $122 million was less than the $151 million loss HTC experienced in the third quarter. HTC chair Cher Wang attributed the positive change to factors like the “good momentum” of the company's Desire line of devices and the “well received” reception by the market for the HTC One A9.

Looking ahead, HTC is hoping to capitalize on a couple major initiatives. One of these is a new partnership with Under Armour on the new UA Healthbox fitness system that launched at CES 2016. The other is the HTC Vive virtual reality device. Wang feels so confident about HTC's virtual reality device that she is apparently planning to spin off that portion of the company into a separate entity. One of the benefits of such a move would be the ability for that division to survive a collapse of the smartphone portion of HTC's business.

source: HTC

Jeff Causey Author

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina. Jeff's past Android devices include an HTC EVO, a Samsung Note II, an LG G3, and a Motorola Moto X Pure Edition along with a Samsung Galaxy Tablet 10.1. He currently uses a Samsung Galaxy S8 and (very rarely) a Nexus 7 (2013). He is also using a Verizon-branded Motorola Moto Z Play Droid supplied by his job. Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active an active runner usually training for his next marathon, owns a Mazda MX-5 Miata, and plays Dungeons & Dragons. Jeff has three grown kids and a golden retriever.

1 comment

Goran says:

February 3, 2016 at 4:27 PM

If htc priced a9 399 (promotional price in USA) in whole world with all the benefits as in USA….or 350 better:) that midrange phone would be hit today. But lowering specs and raising price with no benefits (Europe) destroyed all chances for a9. Htc leadership is not wise at all. And if they continue like they did with A9….the end will just come faster. Make supreme phablet reasonably priced, lower prices for other models already on market (all of them overpriced for their specs), treat whole world the same and u can expect something.
Change leadership to stop terrible biznis decisions. Vive wont save htc. World economy is declining and that thing will not sell well. Mistake is to not focus on phones.

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