HTC makes $75 million net profit in 2Q

HTC has managed to register a net profit of $75 million in the second quarter, which was better than the result that analysts forecasted.

HTC said that the result is much better than the result achieved by the company in the previous quarter. Earlier analysts predicted a profit of $72 million in the second quarter, after the company suffered a setback in the sale of much anticipated One M8.

Analysts of financial firm Canaccord Genuity said that the flagship smartphones inlcuding One M8 is experiencing fading sales amid tough competition.

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Analyst Michael Walkley said that the competition would get even stiffer later this year, as more phone models enter the market. HTC’s products have been overshadowed by the far larger advertising budgets its competitors such as Apple and Samsung Electronics.

US wireless survey conducted by Canaccord Genuity found soft sales for the HTC One M8. He said that the competition would intensify for HTC in the second half of this fiscal, as it fights for consumer attention against Samsung’s large array of smartphones, Chinese manufacturer’s offering and the anticipated Apple iPhone 6.

In an effort to counteract the marketing efforts of its competition, HTC has taken to customer-friendly campaigns, offering a guarantee to access to the latest version of Android. Besides, the company also announces a replacement phone if the glass is cracked within the first year.

HTC has changed its strategy to capture the tier 2 and tier 3 cities in India by introducing budget smartphones. HTC has launched HTC Desire 516 and 616 to compete with budget smartphone segment, as the company has lost its considerable market share to Indian mobile manufacturers such as Karbonn and Micromax.

Desire 616 is the latest o hit the market with 5 inch screen. Priced at Rs 15000, the smartphone is powered by Mediatek Octacore processor. Desire 616 is expected to reach Indian market by this week.

editor@gizmolead.com