HTC Corp. has slashed its revenue projection for the second quarter of the year 2015 and mentioned that, the sales of smartphone is expected to fall deep more than the company predicted, as a result of net loss, the company has slashed the revenue projection for the second quarter.
HTC mentioned in a statement that, the company might incur a net loss of around 8 billion New Taiwan dollars for the current quarter that ends on June 30. The company has planned to cut some of its manufacturing to some of its models and planning for an all-new strategy for the upcoming quarter.
HTC was a top seller in the Android smartphone market a few years ago, but the same returned a loss indicates how a second-tier company struggles to strive in an existing market.
The company noted in their filing as,
“In recognition of prevailing market conditions, HTC has embarked on a comprehensive review on our assets based on current business conditions and future operational needs,” and also added, “The change for revenue outlook is due to slower demand for high-end Android devices, and weaker than forecast sales in China,”
The low-cost smartphone manufacturers such as Xiaomi Inc., are getting attractions of the consumers in a short period of time. Despite of praising the design of HTC’s flagship of the current year, HTC One M9, some experts suggest that, hardware of the device is skeptical while compared to its previous model. Chairwoman Cher Wang, who became chief executive since March, said that the company is moving beyond the smartphone business.
In order to fix this issue, HTC has plans to expand their marketing strategy by entering into the world of virtual reality devices. Since the market is in developing phase, manufacturers have a huge probability to become a one of the most important players of the market.
[ Source ]