Another Q Profit For HTC After CEO Dumping
The change in fortunes follows the dumping of former CEO Peter Chou who in the past has been responsible for some major marketing blunders.
HTC founder Cher Wang has taken over as company CEO, as the Taiwanese Android smartphone maker looks to expand beyond smartphones.
Unlike Chou, Wang was open with her discussions about the future of HTC at the recent World Mobile Congress in Barcelona, while Chou dismissed discussing the Companies new HTC One M9 with Australian media.
The A$15 Million dollar profit announced today exceeded analyst expectations. It also follows extensive investment in the development of their new HTC One M9.
The Company was expected to deliver an A$9.5 Million dollar profit.
Revenues ending March 31st reached NT$41.52 billion, which was greater than the NT$33.12 billion generated a year earlier but behind the NT$47.9 billion from Q4 2014 when the Company was running out their old model HTC One M8.
HTC who are now rolling out fitness trackers and a new virtual reality viewer, is also working on new sound systems as well as several devices that work around a smartphone.
Their current One M9 flagship has not yet had an impact on HTC’s figures however a survey of analyst forecasts puts second quarter profit expectations at a much healthier $20 Million.
Currently both Telstra and Vodafone have the new HTC One M9 in prime positions in their stores. Also heavily promoting the new HTC offering is JB Hi Fi.
Analysts suggest that growth in the Desire series may continue to prop up revenue levels this year, although the mid-range market has become increasingly competitive.
In a bid to improve profitability, HTC is said to be looking to boost production volume to help lower overhead costs.
Both the recently released RE Camera and Vive virtual reality headset are helping the company develop new revenue streams and a change in leadership at the top may give HTC a refreshed perspective this year.
Chou, who struggled in conversations with Western journalists but loved to grandstand in front of Asian media was responsible for some major marketing disasters.
Known for his meddling in marketing activities Chou was the man who signed off on the HTC One 8 marketing campaign that saw Ironman Robert Downey, Jr signed to a multimillion dollar contract.
The only problem was that Chou failed to sign the deal globally resulting to subsidiaries in Countries like Australia unable to benefit from the Downey association with the brand.
One major marketing publication in the USA wrote “Hey, remember when HTC went out and snagged Robert Downey, Jr. for what was supposed to be a major $1 billion marketing campaign? And remember how the only thing that came from it were utterly nonsensical ads that barely even made mention of any of HTC’s products? If not, we don’t blame you: It’s something we’d like to forget as well. It’s been months since HTC’s marketing team unleashed the Downey-led Hipster Troll Carwash ads onto the world and now the company is finally back with a new promotion featuring Downey and it might be the single most depressing spot for a smartphone we’ve ever seen.
The video shows Downey in a film studio giving eighth-hearted praise to the new HTC One (M8) for its award-winning design while making a couple of lame jokes. The entire video looks like HTC stormed onto a movie set and forced Downey at gunpoint to make a spot for them – neither his heart, mind, pancreas or any other part of him really looks all that into it. To say that Downey is phoning it in would be an insult to phoning it in – watching him in this promo video is only slightly less depressing than witnessing a puppy massacre”.
Now HTC under Wang is heading in a new direction, with analysts at the recent MWC claiming that the moves being made by Wang, which include the appointment of a new marketing director is “A positive direction” for the Company.