HTC Close Out 2016 With Net Loss, Commit To VR
HTC have reported an operating loss of NT$3.6 billion (approx. US$117 million) in their latest earnings report for the final quarter of 2016.
Revenue for the quarter ending December 31st totalled NT$22.2 billion (approx. US$715 million), down on the previous Q4’s NT$25.7 billion.
Despite the less-than-stellar result, Cher Wang, Chairwoman and CEO of HTC, was pleased with the company’s resolve and progress towards resuming profitability.
In a statement, HTC claims that operating expenditure has been aggressively managed through enhanced resource realignment to deliver a 34% cost reduction over the year.
“I am pleased with the overall performance over the past year, with innovation triumphing in all of our focus product areas, widely recognised among customers and media alike, while we continue to enhance efficiencies across all key processes,” she said.
Wang highlighted the company’s continued commitment to VR, saying “we have learned much from our entrance into the world of virtual reality, and we believe our focused approach to building the ecosystem is the right strategy to enable the whole industry to expand through the creation of compelling content and rich experiences, and that our HTC VIVE is at the forefront of that market.”
It is understood that HTC’s virtual reality efforts, said to be outselling rivals 2-to-1, are continuing to grow but, ultimately, account for a relatively small proportion of the company’s revenues.
Only five years ago, HTC’s stock was listed at $1300 but the company has since declined in value as a result of broader stagnation in the smartphone market.
Importantly, this trend has less to do with the quality of HTC’s handsets and more to do with the profit margins made by Android smartphone manufacturers.
As reported by Digital Trends, Apple scooped up approximately 91% of industry profits for the smartphone sector.
In comparison, Samsung accounted for 9% of smartphone industry profits while Sony took 1% and BlackBerry less than 1%.
Hopes are high that HTC’s new HTC U-branded handsets will drive more positive results come February.
In the meantime, the company’s shares have dipped 3% since the report was posted.