There was a lot riding on the launch of the HTC One (M8) – the Taiwanese manufacturer’s latest flagship smartphone – with the company hoping it would turn around their fortunes. Initial results are encouraging, with unaudited results for the second quarter of 2014 showing a return to profit.
The predecessor to the HTC One (M8) received widespread critical acclaim, although this wasn’t enough to halt a decline that last year saw HTC post its first ever loss.
After tax, HTC reported a net profit of NT$2.26 billion (€55.64 million/$44.08m), on the back of NT$65.06bn (€1.60bn/£1.29bn) in revenue. This is an 81 percent increase in profit compared to the NT$1.25 reported in the same quarter last year.
HTC’s Q2 revenue was reported as NT$70.70bn, in 2013. Therefore, revenue has declined year-on-year, which highlights the effectiveness of the cost-cutting programme HTC introduced.
The fact that revenue has fallen will frustrate many at HTC. Last year, as the company’s flagship smartphone did not live up to its critical success in commercial terms, a key aim was to significantly improve marketing and sales of the HTC One (M8).
Given the fall in revenue, it seems likely that the HTC One (M8) did not produce the sales breakthrough that was hoped for.
Overall, however, with the company having halted a worrying decline and returned to profit, HTC’s latest results should be a source for optimism. There are encouraging signs of progress, even if more work is required in order to secure the company’s recovery.