HTC earns its first profit in over a year

BY Rajesh Pandey

Published 3 Jul 2014

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Even with two remarkable handsets in two consecutive years, HTC has been struggling to report a profit. Things seems to be changing for the better though, as according to HTC’s unaudited Q2 reports, it has managed to earn a profit, however modest it is.

The $75 million (NT$2.26 billion) profit finally breaks the streak of HTC losing money or barely making it to break-even over the last few quarters.

This is slightly higher than what the company made last year ($NT70.67 billion) during the same period, and a huge jump from the loss of NT$1.8 billion it made last quarter. The company had a turnover of NT$21.917 billion in June, which is slightly higher than what it made last quarter but less than the business it did in Q2 of previous year.

While HTC managed to meet the expectations of financial analysts, it is still not out of the danger. Many analysts believe that Q2 was the period during which the company sales peaked aided by the broader availability of the One M8 and launch of the Desire 816 and One Mini 2 in many Asian and European markets.

If the company does not launch a new flagship device during the second half of this year, it may very well again slip into the red.

[Via HTC]