HTC has reported released its Q4 2013 results and the numbers do not look good. Furthermore, the Taiwanese smartphone maker expects revenue to decline even further in Q1 2014.
The Taipei-based smartphone maker posted quarterly revenue of NT$42.9 billion (about $1.4 billion USD). That’s a 28% decline year-over-year from Q4 2012, when HTC posted revenue of NT$60 million ($2 billion). Its net profit for the quarter was a slim NT$0.31 billion (about $10 million) and gross margin was 17.8%, but its operating margin was negative 3.7%.
HTC expects its revenue to drop even further in Q1 2014 to a figure between NT$34 billion ($1.12 billion) and NT$36 billion ($1.18 billion), representing its third consecutive quarter of losses.
Known for its premium Android smartphones, HTC recently added several devices to its mid-range Desire line and sold a champagne gold edition of the HTC One in certain markets.
There are signs, however, that the company is retooling its strategy as it struggles to recover from a year plagued with declining revenue, the departure of several key executives, and supply chain problems. CEO Cher Wang told Reuters that it will begin to sell more products priced between $150 to $300, including a new flagship phone, in order to compete with other device makers like Samsung and Xiaomi.