HTC’s new flagship phone announced late last month has only hurt the company financially, at least so far.
The Taiwanese manufacturer, which has its North American headquarters in Bellevue, reports that revenues fell and losses widened during the first three months of the year as consumers waited for the new HTC One M8 to go on sale March 25.
While the phone-maker is frequently commended for building the best Android phone on the market, HTC’s marketing budget has not been large enough to be heard above the roar of Apple and Samsung. It’s hoping the specs on its latest device can speak for themselves: The M8 comes with an all-aluminum finish, a five-inch screen and a new camera that allows for new professional-looking photos.
First quarter revenues fell to NT$33.1 billion ($1.1 billion), from NT$42.8 billion a year earlier as the company racked up losses of NT$1.88 billion ($62 million). It is the second loss the company has reported in the past nine months.
An average of 19 analysts had estimated that HTC’s first-quarter sales would total at least NT$35.4 billion, while HTC had forecast a figure of NT$34 billion to NT$36 billion. Losses were also wider than expected, with analysts expecting the company to lose NT$1.71 billion, according to Bloomberg.
HTC says the financial downward trend is short-term with its turnaround strategy not only targeting the high-end market with the HTC One M8, but also offering more affordable phones for the mid-range market, like the Desire 816.
“The company expects to see positive trajectory of its revenue in April from March and forecasts quarter-on-quarter revenue growth in the second quarter,” HTC said, in the statement to Bloomberg.