Posted a month ago HTC's preliminary report on the first quarter did not allow investors to hope that the Chinese smartphones manufacturer has any decent dividends. Delaying the release of a new high end - the model HTC One - the company actually failed the first quarter.
According to the developer, the new high end smartphone is an explosive mix that is more than 60% will increase the company's revenues have for the next (second) quarter. Thus, in the first quarter HTC revenue was approximately $ 1.44 billion in the second quarter, the company expects to receive as much as $ 2.37 billion
In the last few months HTC first time in its history, has consolidated its efforts on promoting the brand, putting together production, marketing and planning. That took huge funds that ate net income and reduced margins. For example, the amount of gross profit in the first quarter fell by 20.3%, and the return rate from manufacturing operations - to 0.1%. The rate of return on production in the second quarter 2012, for example, was 7%. In the next quarter, this value will be raised to 1-3%.
Net income in the first quarter was $ 2.87 million, although the marketing budget for the first half this year has been increased by 250% compared with the same cost in the first half last year. The company also confirmed that the production of devices on Android and Windows Phone - this is an ongoing priority for the immediate future.