Enterprise IT/Software

Cost-cutting measures lift HTC's Q1 profit by 80%

Software CBR Staff Writer

13:52, July 4 2014

Finally returns to profit despite poor revenue.

HTC has generated an unaudited profit of $75.6m during the second quarter of 2014, following three consecutive quarters of operating losses, signifying that the smartphone maker is not yet out of the global smartphone race.

The rise in profit was 80% more than on the corresponding period in 2013 and was mainly attributed to the company's cost-cutting measures, increase in sale of new flagship and midrange phones, and asset disposal programmes it carried out.

Taiwanese smartphone maker's profit however a drop in the bucket compared to the billions raked in by other mobile makers including Samsung and Apple each quarter, though it offers a silver lining for the beleaguered company.

During the quarter, HTC's revenue reached $2.17bn, down from the revenue generated during the corresponding period last year.

HTC has been struggling to maintain its position in global smartphone market as it is failing to match the sales of other major smartphone vendors and sales of cheaper Chinese phones.

One of the leading smartphone maker three years ago, now fighting hard to secure its place among top 10 smartphone vedors.

A recent report revealed that HTC would reportedly build the Google's next Nexus tablet, codenamed Volantis, which is set to be an 8.9-inch device boasting a 2048 x 1440 display, 32GB of storage and an 8MP camera.


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