Analysts are estimating that the production costs for the high-end HTC One may cause the company some significant Q3 losses.
Could HTCs flagship smartphone, the HTC One, actually hurt the company? If things continue the way they are going, it's very possible. HTC CEO Peter Chou stated that there was "a lot of overhead" with regards to the phone's production, and that "The HTC One cost structure is high, we have expected it to improve but it is not where we want it to be." Competition is also on the rise, and some other companies are producing gadgets with much less overhead and lower cost structures.
Within the last quarter alone, HTC took an 83 percent hit in its income, which followed on the heels of an additionally unsuccessful Q1. Even so, actual revenue is picking up, and HTC has some ideas on how to reverse their downward profit trends. Chou indicated that HTC has some plans to help its own recovery, and to "address some of mid to affordable range product, we definitely don't want to limit ourselves to any particular segment." It is also still unclear just how much the HTC One Mini will catch on with the public as well, which will also help determine the next quarter results. But Chou is remaining optimistic. "We are hoping Q3 is our bottom," he stated, indicating that Q4 may look brighter according to his estimates.
Photo credit: John Karakatsanis via Flickr
Could HTCs flagship smartphone, the HTC One, actually hurt the company? If things continue the way they are going, it's very possible. HTC CEO Peter Chou stated that there was "a lot of overhead" with regards to the phone's production, and that "The HTC One cost structure is high, we have expected it to improve but it is not where we want it to be." Competition is also on the rise, and some other companies are producing gadgets with much less overhead and lower cost structures.
Within the last quarter alone, HTC took an 83 percent hit in its income, which followed on the heels of an additionally unsuccessful Q1. Even so, actual revenue is picking up, and HTC has some ideas on how to reverse their downward profit trends. Chou indicated that HTC has some plans to help its own recovery, and to "address some of mid to affordable range product, we definitely don't want to limit ourselves to any particular segment." It is also still unclear just how much the HTC One Mini will catch on with the public as well, which will also help determine the next quarter results. But Chou is remaining optimistic. "We are hoping Q3 is our bottom," he stated, indicating that Q4 may look brighter according to his estimates.
Photo credit: John Karakatsanis via Flickr
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