HTC's losses continued in the first quarter of its fiscal year, casting concerns over the company's recovery from the slide which began last October.
According to ZDnet, HTC posted losses of $62.2 million in the quarter that ended March 2014; that's compared to $85 million profit last year. In fact, the company's performance this time has been worse than analysts' predictions, which were about $52 million in losses. The revenue generated at the end of the first quarter is $1.09 billion, 22 percent less when compared to last year.
According to PC Magazine, HTC's struggle continues amidst the launch of its flagship HTC One (M8) last week. HTC cofounder Cher Wang admitted the problem in 2013 was that the company's focus had drifted from mid-tier devices and was fixed on flagship products.
"We only concentrated on our flagship. We missed a huge chunk of the mid-tier market," said Wang in an interview with PC Magazine in February.
According to the Wall Street Journal, the company's revenue fell to a five-year low last quarter. It also said that HTC's slump continues though Android based phones receive strong reviews, owing to the company's operational problems. The competition from Apple and Samsung has pushed the Taiwanese cell phone maker's market share from 11 percent in 2011 to its current share of 2 percent. However the cell phone marker says the problems have been addressed.
"Our supply chain is going to be much better. Our marketing communication is going to be disruptive and is going to be much more direct with our end user," said Wang in an interview with The Wall Street Journal.
The company is also hoping that its new launch would reverse its fortunes, but analysts feel that one launch could improve sales in one quarter but cannot do more.
According to the Wall Street Journal, J.P. Morgan analyst Alvin Kwock stated that HTC would not find it easy to come back as it may not be able to spend as much money as companies like Samsung in marketing, which is essential to pull it out of the crisis.
