HTC Corp Hits Record Low Revenue in the First Quarter of 2013

Taiwan’s largest smartphone manufacturer, HTC, has reported their lowest quarterly revenue. According to analyst, this is due to the delayed release of their latest flagship smartphone, the HTC One, that caused the company not to reach their profit target.

In the first quarter of 2013, HTC’s net income decreased 2.8 million USD or 85 million NTD. This is the sixth plunged of revenue said HTC Corp. yesterday in their income report.

HTC’s preparations and getting people excited for the release of HTC One suddenly lost momentum when the company stumbled in some issues in February. They had a shortage of camera components that pushed them to postpone the shipments of the smartphones in the market. The possible leads to make up revenue could rebound in the next quarter as new smartphones are emerging such as the new Galaxy S4 of Samsung Electronics Co. and rumors of the next Apple’s iPhone, the iPhone 5s.

Analyst Dennis Chan of Yuanta Securities Co. said “These numbers show the production shortage really is that bad, and my sense is that it won’t get much better in the second quarter because many of those issues continue,” he also recommended selling the stock and said that timing for smartphones is a key and any delays could mean losing everything.

According to Bloomberg, revenue in the first quarter of 2013 dropped by 37% from last years’ 14.2 million USD or 42.8 billion NTD.

HTC Corp