HTC Revenues Dip Ahead Of HTC U Launch
A myriad of factors has seen HTC experience a 27.98% drop in year-on-year growth in its latest monthly revenues report.
The company reported unaudited revenues hit a reported ten-year low of approximately US$150 million.
Sources told Digitimes that the weak revenue performance was caused mainly by fewer working days in the month due to the Lunar New Year holidays.
Hopes are high that HTC’s new HTC U-branded handsets will drive more positive results come February.
Both the HTC U Play and HTC U Ultra feature a new AI-driven application, called HTC Sense Companion, that HTC say will allow it to learn and adapt to a user’s habits and tastes.
HTC’s Rob Saviane told ChannelNews that the tech company’s new direction is all about emphasising individuality through personalisation and enabling the consumer to “live a more brilliant life”
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.
HTC’s stock price dipped 3% in the wake of the report but has since risen back up to $76.90.
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%.