While HTC’s second quarter earnings suggest a minor financial turn around following the release of the HTC Vive, all is not well.
Despite the quarter’s recorded 18.9 billion Taiwanese dollars ($598 million USD) in revenue, sales are down 42.7 percent year over year.
However, this does represent a 27 percent increase in revenue since last year and also improves on the 64 percent annual decrease recorded last quarter.
The company experienced an operating loss of 4.2 billion Taiwanese dollars ($133 million) with an operating margin of negative 22.5 percent, making this the fifth consecutive quarterly loss for the company. While HTC isn’t out of the hole entirely, the company does show signs of life.
In its earnings statement, the company credits the majority of its improvements to the success of the HTC Vive. It’s important to note however that thus far, the Vive has only sold in small numbers and will likely be much more prosperous for HTC in the longterm.
To take advantage of the obvious excitement about the product, HTC created a $100 million fund to expand on its virtual reality ecosystem.
While HTC claims that its latest mobile release, the HTC 10, sold well, sales data strongly suggests otherwise. While the company expects the sales momentum to continue into Q3 2016, it’ll take a huge push to make HTC profitable again.
Related reading: HTC Desire 530 now available in Canada for $199 unlocked, coming soon to Wind Mobile and Videotron
[source]HTC[/source]
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