HTC publishes Q1 2013 financial results, has optimism for Q2 and beyond

HTC has officially published its consolidated Q1 2013 financial results, confirming what was previously revealed with the unaudited Q1 figures. As the closing of 2012 showed, HTC is in a struggling position against the almighty Samsung. The start of 2013 hasn't been kind to the company, but there's definitely optimism for its future.

Total quarterly revenue was pinned at NT$42.8 billion ($1.42 billion), with a gross margin of 20.3 percent and a whopping operating margin of just 0.1 percent. Net profit was NT$85 million ($2.88) while earnings per share stood at NT$0.10 ($0.003). While the numbers paint a glooming picture, HTC CEO Peter Chou described the quarter as pivotal for the company with its transition to a new flagship smartphone. 

It was always going to be a difficult uphill battle against Samsung with its established array of Android hardware. Looking ahead at Q2, it's expected that a significant uptick off the back of the HTC One launch will be experienced. The company predicts second quarter revenues of NT$70 billion ($2.73 billion), a gross profit margin of between 22 and 24 percent, with an operating margin of 1 to 3 percent.

via: Android Central

Rich Edmonds
Senior Editor, PC Build

Rich Edmonds was formerly a Senior Editor of PC hardware at Windows Central, covering everything related to PC components and NAS. He's been involved in technology for more than a decade and knows a thing or two about the magic inside a PC chassis. You can follow him on Twitter at @RichEdmonds.

  • The HTC One seems like a great phone!  If I were to get an Android phone, that's probably the one I would go with.
  • I agree, it seems to be about on par with the Lumia 920 with each having it's own strengths and weaknesses. It's a nice looking phone whether you want to argue about copying design from other phones or not and it seems pretty powerful in all areas. 
  • Agreed
  • well yeah, when you steal chips from the 920, it is going to be on par with it.
  • Wrong STM sold the mics to HTC while STM was suppose only sale them to Nokia for a limited time so HTC is allowed to use current stock of the STM mics and will seek a replacement
  • Replace with what, exactly?
    Nothing good can come of it. HTC has already begun removing the microphone marketing.
  • You can't be so stupid, that you believe HTC doesnt know what chips it is using and who invented them?
    HTC - Silently stealing
  • Wrong, it was the 720, not the 920.
  • So the only good thing about the phone is the microphone? Are you on crack?
  • It does share some of the 920s hardware.
  • Oh come on. The HTC One is miles ahead of the 920, not on par with it. I'm a WP aficionado as much as the other guy, but let us call a spade a spade.
  • +1
  • +100
  • Wouldn't say miles ahead, but it does have a better SoC.
  • Lol like what it is in your mile dude? Other than stealed design, stealed mic, windows phone imitating feed home screen, stealed ultrapixels aka Nokia pureview and couple other things.
    There still are people who likes more about honest companies like Nokia. Ofc. There are always few who doesnt care about thievery.
    HTC - Silently stealing
  • I think the word is stolen.
    Pureview isn't Ultrapixel.  In fact, it's the complete opposite aproach.  Nokia went with the best available and HTC brought something new.  Both were great aproaches!
    What design piece was stolen?
    Blinkfeed isn't Live Tiles - if anything it's more like Flipboard.
    -Just an HTC fan standing up for HTC
  • I agree, it is a nice looking phone, and that's why the OS included should have been wp8. The neutral aluminum body would go well with any of the selectable tile colors. To me, this is one of the reasons Microsoft needs the make its own surface phone, because manufacturers like HTC use their best designs to show off Android, not windows phone. The 8s & 8x are nice, but they don't send updates or anything, therefore not truly supporting wp8 like it should be! Nokia is the only real player in the MS game; If MS makes a surface phone, we will have two serious players promoting WP, because as it stands, as pointed out above, there's only one, "True Playa"......NOKIA!!!!!!
  • +1
  • Agreed. But that won't be anytime soon.
  • I think something similar to the One in terms of build quality and design language would be fantastic, but who knows with HTC these days.
  • HTC was a great company back in the winmo days.. If only they would spend more time with WP.. I really like my old hd2
  • The Hd2 is a god amongst all phones. I still have mine and refuse to give it away.
  • Here here, its the phone that got me into phones, and into modding, then into android, and finally, windows phone 7.5. What a phone.
  • I've had the 8X for a couple of months now, and I have been nothing but impressed. I to agree that the one X is an amazing device. I actually traded in my galaxy note 2 and returned to the windows phone platform!!! Sammy just doesn't cut it!
  • Honeybudger--I started out with the HTC HD7.....great windows phone device.
  • +1 but battery life sucked
  • I have a HD7...not that great battery life. but other than that it's a great device!
  • What phone is that? Looks like HTC 8x with a micro SD slot???
  • no it looks like an 8S with a microSD slot, because it is.
  • Lol
  • HTC is fighting a battle they can't win against Samsung. They put out a decent W8 phone (8X) but there's no killer support like Nokia has. HTC needs to release a top notch W8 phone with at least 32GB and a 4.8 screen. They really gotta support it with updates and bring the missing W7 apps they have to W8. If they do I think HTC can turn their sinking ship around. If HTC stays their course I think it'll be all she wrote for them.
  • They CAN turn things around.
    To do that, they need to make sure that their Android and WP flagships succeed.
  • why do you think their operating cost is low?
  • Agree with this. Love the HTC hardware, but HTC support has been lacking un their devices. No doubt they can compete, but they need to realize people are expecting support these days.
  • HTC one will outsell the GS4. You heard it here first folks. A buddy of mine has one and I can't get over the build quality of the device.
  • No doubt it's better than the G4. HTC can't win the marketing game with Samsung. Samsung will market the G4 to death.
  • No it won't. HTC will have another flagship next month, and then wonder why sales are low. To top it off, they don't produce much of anything in-house like Samsung, so profits will continue to be low.
  • I wish there was a meaningful way to place a bet against you for real money :)
  • It's unlikely - even thought it's arguable that the HTC one is a superior device - Samsung simply outspend them at such a level on every front that that advantage is simply cancelled out. 
    HTC's marketing budget has actually shrunk and Samsung's is somewhere in the region of 19 times bigger - look at the figures here. 
  • They should get in league with MS, build a killer WP phone and let MS do the marketing for them (a la Nokia). At this rate Samsung is going to beat them at this whole marketing game on Android, and Google has nothing to gain from helping them out.
    It's all wishful thinking of course.
  • Most of the successful WP marketing is led by Nokia, not Microsoft.
  • Yup thats correct, whats even more interesting in this "marketing" is that its not exactly the advertisements that has created this little buzz around Nokia its more these constant events and app releases, updates etc.
    At least for me thats what I see more than anything conserning Nokia and that it really is constant, every week allmost everyday and then some leaks. Right now we have leaks about EOS, catwalk, 6 inch phablet, 928 what seems to be codename laser.
    What I hear about HTC is that.. They got sued somewhere around the world. Thats pretty much once a month thing though.
  • If you are talking about in the U.S. How so?
  • dup
  • @BK-one HTC one will NOT, I repeat NOT, outsell the GS4! You heard it here first folks. LOL! I have no doubt your buddy is right about the build quality of the HTC One being better than GS4. But if Samsung can outsell a rich, powerful, marketing savvy company like Apple, they can outsell HTC without breaking a sweat. Sorry to disappoint but that's just how it is.
  • I'm willing to bet that they actually lost money on WP.
    Don't blame me. They were the ones who screwed up the 8S and 8X. (Both fine pieces of hardware) Q4 2012 was the perfect chance to take back market share from Nokia. We all know how that turned out. (Disclosure: I'm a fan of Nokia and WP, just pointing out what I wanted to point out)
  • i doubt WP even put a dent in this Qtr.  They had nothing new out and haven't marketed what they have.
    This company is DONE in 3 years.
  • I am quite surprised they still manage to turn a profit. I expected them to go in the red a year ago but with 2.88 million profit this quarter I guess the next one they finally will lose money.
  • Q2 is usually universally better.
  • @WanderingTraveler I'm also willing to bet that the recently published HTC financial report has very litlle expenses on WP. Both 8X and 8S were released 2 quarters ago so manufacturing and distribution for those would have appeared in the previous 2 or 3 quarters ago and not on this one. As to Tiara, that is a Sprint exclusive so the no. of devices for that one would be manufactured under order of Sprint.
    If you are implying that the poor results of the present financial report is due to expenses on putting out WP8 devices, then you are mighty wrong.
  • Microsoft needs to step in and do what they do with Nokia to HTC. Provide financials and marketing support for HTC WP8. HTC would then sign a contractual agreement to only produce Windows phones. With 1 billion/year and marketing from Microsoft they can turn the company around. Otherwise HTC has nothing but a niche market future with Android devices
  • No Microsoft should step in and joint buy HTC with Nokia.
  • They already tried a partnership, calling the 8x the "signature" WP device. HTC was true to form and did nothing to promote the phone or the platform but focused on their androids instead. Doesn't seem to me that investing even more time and money in HTC is a smart move by MS.
  • They might of tried an advertising "Signature phone" approach. But something drastic has to occur. From Microsoft's side. The same type if drastic approach as with Nokia. Full unprecedented financial support and agreement of exclusitivety of WP's.
  • Or HTC could care more about WP and push/support their products themselves? I would have loved an 8x except for the crap space,no support like Nokia, etc. HTC shouldn't have to rely on MS. MS and HTC both need to get their shit together really. HTC needs to step it up on their own and get serious. I think the One is a good example in the right direction. Their getting a good buzz. HTC just needs the same with their WP hardware.
  • Last I checked Nokia is not in a great financial position either and while they do seem to push their products well, their support is hit and miss. People who bought the 900 and a week or two later the 920 came out... Made it seem their 900 was just an experimental phone. Plus I have the 810 which is not very old and look how fast it ended up being OELed and not to mention the LACK of support I get on that phone, surprisingly... Also stop complaining about storage space. Unless you download everything or have tons of games most high end phones today have 16GB and every mobile phone OS seems to be cloud oriented... With the combo of 16+ GB and whatever cloud storage one has from various services should suffice.
  • Electronics of all types go out of date that quick all the time at the rate technology is progressing. TV's, computers, phones etc. Its a normal thing across the board to feel like people felt with the L900. Its just the nature of the business so to speak. Happens all the time....not sure why people got so upset. The L810 getting discontinued wasn't Nokias fault or was T-Mobiles decision. They are just in a stage right now of trying to figure out what types of WP devices sell to their specific customer base...and for now...till Catwalk comes out. I think the L521 is a great fit for their customer base.
  • Ok you're right about the 810 it is not Nokia's fault but rather T-Mobile. Still love this device! I perfectly understand the pace of electronics and how fast they move, just felt that Nokia 900 was not out long enough before the 920 was released but that is the nature of technology business. I guess I should apologize for my over exaggerated rant lol.
  • Nokias support is hit or miss... compared to HTC its allways a hit. Their exclusive apps alone trump them and show their dedication.
    When I compare specs, prices, contracts... Im going to complain about storage. The 8x lacked in almost every way compared to the 920 and was more expensive or the same price. Your should suffice comment is a huge should when it comes to storage. I dont want to rely on cloud storage. I want enough space for multiple full albums,apps,pics,etc. I dont want to have to manage what I can have on my phone due to lack of space. Regardless of cloud storage. 16gb does not cut it when compared to other "flagship" phones. If you want to make a name for yourself you come out swinging.
    Now dont get me wrong I liked the look and feel of the 8x better then the 920. If it had everything that the 920 offers I would get an 8x. But  when you compare what the 920 offers vs the 8x the 920 is the better buy hands down...
    I just wish Nokia and HTC would release super phones like they do with Android (HTC,Samsung) just to get people talking. Of course MS needs to step it up with the os too. Just so everybody is on an even playing field and nobody can talk shit on what WP lacks. WP hardware and software is allways going to be the distant other guy if something big doesnt happen that makes it stand out or atleast be on even ground.
  • Unless you have 8GB of Other taking up half of that space.  It is primarily MS' fault, but HTC has provided no way to manage the problem. 
  • When 95% of your Sales are Android and you get into a Problem there, you fix first what keeps you alive. HTC did what they had to do. Look at the new One, First and One Compact. All good products.
  • @mrolympia74 I'm sure that will not happen because I doubt HTC would ever go WP exclusive, which would be a condition for MS subsidy. Secondly, unlike Nokia, HTC doesn't have much to offer MS other than going WP exclusive in return for the subsidy. Nokia gives MS use of a lot of Nokia services aside from just going WP exclusive. I think it would be a better proposition for both MS and HTC to just let them do the Surface Phone for MS.
  • And also with Windows phones devices unless Microsoft steps in
  • Loving my 8x. Things will get better HTC
  • This is my opinion here: since Samsung is showing very little support here as they seem to be dominating Android so soundly, I would say have HTC do Windows Phone exclusively. Unfortunately, Android is still HTC's bread and butter and as I'm a Lumia 920 owner, I can't comment much on HTC's level of support to WP owners; Nokia's support of WP is without question for reasons clear to many here: 1) Bing Nokia's "Burning Platform" Memo and 2) They're all in on Windows Phone. And since Nokia's noticed Samsung dominating the overcrowded Android market, Stephen Elop must've felt Windows Phone was their OS to stand out as Samsung and HTC were the only serious competitors on WP. Unfortunately I can't speak for Dell support as I never used the Venue Pro. But this is HTC we're dealing with. This article just tells me they're caught between a rock and a hard place. By that, I mean bulldozing competition by Samsung in Android and bloodier competition by Nokia in Windows Phone. If HTC can strike out harder than Sammy and Nokia with more aggression, they might do better. Of course everyone also knows it's easier to focus on one task rather than juggle two or more platforms. In conjunction with that, if you focus on one platform you have more money to allocate than you would with two platforms. Competition is needed but I pray HTC doesn't overreach with both Android and WP. I may be using Nokia, but I'm also rooting for HTC as well. And this is from a former Samsung Focus/Focus S WP7 user.
  • HTC makes good hardware. I love my HTC Arrive. But the reason I'm going with a Nokia Lumia for my next phone instead of an HTC 8X is the support. Nokia continues to be your partner for the life of your contract. HTC, from my experience, forgets you're a customer after the sale is made.
  • Or so you think. I have a Nokia 810 and look how quickly it got discontinued. Not to mention the lack of accessories that were present at launch and the amount that are available now (none). It feels like Nokia just left me after the sale... You see where I am going with this?? What about those who got the 900 and a week or two later the 920 was released?
  • A week or two later? You make it sound like they released the 900 and literally a week later, came the 920. While I agree that whole transition between wp7 &8 was handled poorly lets not overexaggerate.
  • Sorry for the over exaggeration... I think it was mainly the WP 7 to 8 transition that was a bit of a mess, not the 900 which is a heck of a device.
  • Don't blame Nokia about that. It was MS decision not to support 7.x.
  • You're absolutely right. It was a bit of a mess transitioning to WP 8 but MS had to move on and bring innovation.
  • I hope HTC makes a come back. If I were to get an android phone hands down I would get the One anyday over the S4. S4 just feels plasticy and cheap. Plus Samsung is the one who tends to purposely copy others without giving much of a fuck and the quality of much if their products does not impress me...
  • Unlike the HTC 8X/8S or the Lumia 920, at least the One is showing up in stores everywhere. But given that Samsung continues to dominate the attention of the tech press, and the brand is more instantly recognizable, I'm pretty sure people will ignore the One. It's sad that the Galaxy S4, like the iPhone 5, offer more of the same and yet people continue to gravitate towards those devices. Consumers and "experts" alike seem to have a one track mind. Like our political parties, there can only be two dominant players, two sides of the same coin, Samsung and Apple. In light of this I predict HTC's sales boost will be short-lived.
  • You make a very solid point. Unless I am on a tech site, all I hear on other news stations/websites is praise for Apple and Samsung nonstop. And when they do mention competing platforms or OEMs (BlackBerry, WP8, HTC etc), they really downplay them or try to really set them apart in an "interesting" way.
  • Back in the wp7 day, HTC Titan was amazing, until I realized the mic was poor quality and everyone said I sounded muffled. Then the reception was poor due to bad antenna design. however with the New HTC one, we know their mic is fixed because its the same hardware as the 920. Assuming the antenna and reception is on par, the HTC One looks amazing.
  • I still smile when I see a picture of an 8S. Beautiful phone.
  • When the Lumia 920 was announces it was a super phone. More tech crammed into it then just about any other phone particularly when you consider the usefulness of the tech involved. What held the 920 back was the carrier exclusivity deal because everyone else couldn't buy it. HTC leaves the fate of their company everyone else but them. Dummies should've worked a deal to push WP8 and tried to help control the market as WP market share grows. In this way they wouldn't have had to deal with the Samsung marketing juggernaut head on.
  • I think HTC is doing well with the 8x. I have been spotting it more and more out in the wild. I got a chance to see a red 8X and oh man is it a sexy phone in red. I think HTC needs to rethink their strategy. They are double dipping (Android and WP8) but much of their sales is android (unfortunately). The One is one heck of a phone and even after reviewers and tech sites rave about it, Samsung just has that marketing edge and I have a feeling many customers will choose the Samsung over HTC solely for that reason. I am hoping HTC lives on and continues to make great devices such as the One and 8X.
  • My Titian got stolen from my dorm a year ago. Before that tho I would show off that baby everywhere.
  • HTC is worst copycat adversary for Nokia and they even stole Nokia's HD microphone to their latest flagship phone. No sympathy from them here.
  • They stole nothing, they were told that they could buy the microphone by the manufacturer.
  • and they act like they invented it?. come on..
  • Correction "they act like they IMPLEMENTED it" Apple did not create the touch screen but they IMPLEMENTED it in a phone.
  • If HTC had released the One but with wp8 instead of android, I may have purchased it instead of my 920. I think the phone is that good looking it's the only phone to compete with the 920 on industrial design. And no, I don't count the iPhone in this discussion because to me the iPhone in its current form is no longer pleasing to the eye.
  • If yall read the same thing I read, Nokia was sueing HTC for like 51 architecture patents. Thats a ton, ones going to sting, the best would be get your damn phone off the market. Its a copy anyway with a bad operating system., I hate droids.
  • HTC makes really good phones.  They just don't care about you once you have one.
    Has anyone tried their storage app?  It does literally nothing.  I keep buying their phones because they were the best hardware available on Tmobile at the time I was looking for a phone, but being stuck on Froyobread forever without a prayer of an upgrade and now having 8 GB of Other I can't flush is a frustrating experience. 
  • HTC are not looking a good investment, if they expect just a small profit after releasing their major phone for the year then what is going to happen in later quarters when the HTC One is old news again?
    Couple that with their component shortage problem due to illegal parts being used and they are not looking good at all even for that prediction.  Marketing has been their problem so far for Android, and while Samsung have a bland product in the shape of the S4 I expect they'll continue to blanket the airwaves. 
    They also have a problem with the lack of customer service, maybe they will turn up to the party with Windows Blue, but right now they look to be sinking out of sight on WP.  Right now BB looks a safer investment then HTC, at least they have a plan.