HTC’s ship continues to fill with water as revenue numbers drop further

Not that far back in time, HTC had more than 10% of the global smartphone market, but in recent years the company has seen a decline in numbers to the point where it’s not even worth mentioning in statistics. The latest financial figures coming from HTC show that things are only getting worse and at a faster rate.

The consolidated revenues of the company fell 37.23% in just a month and 77.41% compared to July 2017. To get an idea how bad the situation is, the last time HTC had such low revenue was in August 2003. The company’s total revenue for 2018 so far is around $544.6 million and while that’s no small figure, it’s 54% lower than it was for the same period last year.

The company’s revenue for the second quarter of 2018 came to $222.2 million, but it recorded a net loss of $68.3 million. One of the few positives HTC had in 2018 came from selling its original design manufacturing division to Google for $1.1 billion. The move kept HTC on the positive side in the accounting books with a net profit of $621 million for the first half of 2018.

The phone maker continues to release flagship devices (latest one is the U12+), but they make almost no impact on the market. One of the positive contributors at HTC is the VIVE virtual reality headset, but the VR industry is not mainstream enough for its 12% device share worldwide to bring sufficient revenue.

If the company’s restructuring efforts and spending cuts don’t have the desired effect, the day we’ll see the last HTC smartphone might not be too far in the future.

source: DigiTimes