I still need the reassurance of a familiar brand before it's a real story - Tony Maddox, CNN senior VP
TAIWANESE PHONE MAKER HTC reported a dismal 98 percent drop in profits for the first quarter, most likely due to the delayed release of the HTC One.
HTC revealed on Wednesday that in the first quarter it took home profits of just $2.85 million, down spectacularly from $152 million a year ago - a 98 percent drop year over year. This is the worst profit figure that HTC has posted since 2004.
The firm's first quarter revenue also stooped to $1.45 billion, although this was in line with the company's estimates that it released in April.
The company did not reveal how many phones it sold in the quarter, and didn't talk much about what caused the decline in profits. However, the delay in the release of the HTC One was no doubt a factor. The phone initially was expected to make its debut in 80 countries before the end of March, but by the end of the month it had appeared in only three due to a shortage of camera components.
Somehow though, HTC remains positive and sees its earnings growing going forward thanks to the eventual release of its HTC One smartphone. The firm said it expects second quarter revenue to surge by 60 percent compared to the first quarter.
HTC CEO Peter Chou said, "This is a watershed moment for HTC," speaking about the HTC One. "This is really the first time we are able to enter into that area of being a top global consumer brand."
Chou added, "In February our teams set a new standard for smartphones, launching the new HTC One. The reviews of fans and critics alike have been overwhelmingly positive and we look forward to delivering on the promise of this device."
However, delays to the HTC One's release now see the smartphone competing head to head against the Samsung Galaxy S4, which is expected to be one of the best selling phones of 2013. µ
Sign up for INQbot – a weekly roundup of the best from the INQ