The company’s loss at the end of the month will interrupt a series of four straight profitable quarters. Revenue for the quarter will range between $1.06 billion (NT33 billion) and $1.16 billion (NT36 billion) – down from $1.36 billion (NT41.5 billion) for Q1 2015.
HTC’s revised outlook is a result of “slower demand for high-end Android devices, and weaker than forecast sales in China.” The company will also take a one-time loss of $93 million (NT 2.9 billion) for “idled assets and some prepaid expenses.”
Revenue for the month of May dropped considerably too compared to April ($347 million vs 434 million). It is worth noting that the previous month was HTC’s worst April in six years.
As you have probably guessed by now poor sales of HTC One M9 amidst intense competition are among the main reasons for the company’s poor financial performance. HTC is working on a new flagship device due for a release in the fall to counter the slump.
Cher Wang, HTC’s CEO and Chairwoman, remarked that the company will “aggressively develop new business opportunities beyond smartphones.” Virtual reality headsets in collaboration with Valve and fitness trackers co-developed with Under Armour represent two such ventures.