TAIWANESE PHONE MAKER HTC's continuing struggles are seemingly not over yet as the firm on Monday posted a larger first quarter loss than analysts expected, due to lackluster sales of the HTC One.
HTC admitted on Monday that between January and March this year it saw T$1.88bn or $62.06m in losses, larger than the T$1.58bn loss that analysts had expected from the firm, and a far cry from the T$85m profit HTC recorded in the year ago quarter. HTC's revenues fell 22.6 percent over the three month period to T$33.13bn.
These losses, Reuters reported, were due to "ineffective marketing" by the firm, which reportedly led to less than impressive sales of its HTC One flagship smartphone. While the company initially saw good sales, it is thought that "confusing" advertising undermined the marketing of the smartphone and ultimately led to slowing sales of the handset.
However, HTC hopes to turn things around with the HTC One M8 smartphone, and claims to have already seen a boost from the handset, as it saw a 2.6 percent rise in revenues for March that it credited to the imminent release of its latest flagship smartphone.
HTC said in a statement, "The company expects to see positive trajectory of its revenue in April from March and forecasts quarter on quarter revenue growth in the second quarter."
The firm added that it also expects to see bumper sales from the HTC Desire 816 smartphone.
Analysts aren't quite as hopeful as HTC, though. Yuanta Securities analyst Dennis Chan said to Reuters, "The [HTC] M8 is good, but it's not as revolutionary as the previous flagship. Everyone is watching the second quarter to see how it sells." µ