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HTC to cut down jobs for profitability

HTC_Chialin_Chang

After M9 launch, HTC was confident for gaining Market share, but M9 could not gain Market share and Snapdragon 810 failed to prove it’s excellence and end result was faced by HTC.

M9 has been facing Thermal issues which Qualcomm claimed has been sorted out. Though HTC sorted the problem by realigning CPU on lower node, but customer refused to accept M9.

Recently, Chialin Chang, HTC’s Chief Financial Officer “HTC has begun to implement company-wide efficiency measures to reduce operating costs across the organization and ensure resources are appropriately allocated to future growth.”.

In a conference call with reporters, HTC CFO Chialin Chang said “the cuts will be across the board,” and that “they will be significant,” according to Reuters. Chang said the cost cuts would extend to the first quarter of 2016 but declined to give further details.

In the second quarter, HTC posted a net loss of around $252.8 million (8 billion New Taiwan dollars). HTC reported revenue of $1.04 billion in the quarter, around half of the $2.05 billion in the second quarter of 2014. It’s an indication that HTC’s flagship One M9 smartphone did not gain traction.

2Q Overview: 
• Weaker than expected demand at the high end, consistent with Android market, along with weak sales in China, lead to a year on year fall in
the second quarter. Meanwhile, year-on-year shipment volume increases were seen across select key emerging markets.
• HTC has begun to implement company-wide efficiency measures to reduce operating costs across the organization and ensure resources are appropriately allocated to future growth.
• HTC continues to invest in promising new product areas such as virtual reality, where the Company is working with over a thousand developers on content creation over a wide spectrum of applications including gaming, entertainment and education, to ensure a compelling ecosystem ahead of the highly anticipated launch of HTC Vive at the end of the year.
HTC is also considering moving some of the company’s manufacturing to India, but nothing is set in stone yet. “We are considering a lot of things. Before getting into manufacturing, we will need to ensure smooth delivery of devices from R&D lab to the end consumer,”

“We were the first company to bring an Android smartphone to the country. Indian market is something that teaches us about new trends, which is always helpful. If we are able to serve Indian market well with the right strategy, we will be able to serve the global market well.”

 

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