HTC revenue down 16 percent in August, worst of the last six months
HTC has a few strong products on the market, especially the HTC One, but its financial results show that the Taiwanese smartphone maker is still going through a rough period. HTC's stock is now down to less than $135 per share, down from a peak of $1300 back in 2011.
Last week, the company released an unaudited revenue report showing that its August revenue fell 16 percent from July, down to $443.3 million. Compared to the same month of last year, August 2013 saw a 45 percent drop in revenue for HTC.
According to some analysts, HTC will close the year with a loss, the first since 2002, when it was listed on the Taiwan Stock Exchange. Meeting its third-quarter guidance is a tough challenge for HTC, since its September sales "will have to grow 60% month-on-month to meet the low end," according to Yuanta Securities analyst Dennis Chan.
With BlackBerry in need of a rescue and the future arrival of HTC One Max, as well as the acquisition of Robert Downey Jr. for a $1 billion marketing campaign, the future may hold some pleasant surprises for HTC and its shareholders. On the other hand, the increased competition from Apple, LG, Sony and Samsung is surely going to make HTC's job tougher, but it will also provide a wide range of interesting options to the public.
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