HTC Expects 63.6% Increase in Q2 2013 Revenue

By Tarun Iyer
published

In contrast to the rather dismal results in Q1 2013, HTC CEO Peter Chou expects a 63.6 percent increase in Q2 2013 revenue and growth in gross margin to between 22 percent and 24 percent.

To describe HTC’s last financial report as a disappointment would be quite an understatement since the company’s profits fell to just $2.85 million, a drop of 91.5 percent from Q1 2012. Due in no small part to the positive reception to the HTC One and its record number of pre-orders, the company is rather more confident about its prospects in Q2 2013. It has revealed that it expects revenue to grow by 63.6 percent sequentially to NT$70 billion (US$2.37 billion) and its gross margins to increase from 20.3 percent to between 22 percent and 24 percent.

Though this is clearly a positive development for HTC, it is worth noting that these revenue projections are still lower than market expectations, a fact that CEO Peter Chou has attributed to “product mix” and marketing expenses that have been raised by 80 percent to NT$7 billion (US$ 237 million). Chou further added that the compacts expect further improvement in its gross margin in Q3 2013 since demand for its “high margin” HTC One will “remain strong and its product mix will improve.”

Tarun Iyer
5 Comments Comment from the forums
  • JamesSneed
    That seems rather optimistic.
    Reply
  • tntom
    Could you imagine what the sales would have had they included a mico-SD slot?
    I am so tempted by this phone because of the loud speakers and Low-light camera alone.
    Secondary to that is its gorgeous all aluminum body.
    Reply
  • Non-Euclidean
    Nice to see them rebounding, somewhat.
    Reply
  • bunz_of_steel
    HTC One no removable battery or SD slot = no sale for me chumps. I'll go with the Samsung S4 instead as it has these two non negotiable features I want.
    Reply
  • gromann
    If the One had an SD slot and replaceable battery, I would have gotten that over the S3... Ironically, they don't seem to be learning their lesson despite the fact their UI is far superior to Samsungs and much of the hardware is as well. Do they seriously miss the fact that removing those features removes a lot of sales?
    People buy android because it's NOT an iphone, don't emulate the product people aren't choosing and you do a lot better.
    Reply