Despite the launch of its newest high-end flagship smartphone, HTC Corp’s (宏達電) revenue last month plummeted 38.66 percent to NT$13.54 billion (US$439.95 million) from NT$22.07 billion a year earlier.
On a monthly basis, the figure fell 32.36 percent from March’s NT$20.02 billion.
Analysts attributed the poor revenue figure to disappointing sales of the HTC One M9, which hit the market last month.
“Revenue for last month was weaker than expected, which was due to poor M9 demand,” a Yuanta Securities Investment Consulting Co (元大投顧) analyst, who declined to be named, told the Taipei Times.
“HTC might have underestimated the Qualcomm Inc S810 processor’s thermal issue, and this has resulted in poor reviews and concern from carriers,” the analyst said.
He said he estimates M9 shipments this year would reach only 4.5 million units, down between 35.71 percent and 43.75 percent, compared with the 7 million units and 8 million units reached by HTC’s previous flagship models, the M7 and M8.
At a recent investors’ conference, HTC gave a sales forecast of between NT$46 billion and NT$51 billion for this quarter.
Based on the firm’s sales for last month, that means HTC has to make NT$32.46 billion in the remainder of the quarter to reach the low end of its sales guidance.
A KGI Bank analyst, who declined to be named, said that he thinks the likelihood of HTC reaching the low end of its sales guidance for this quarter is low.
“Based on our channel checks, retailers have been lowering the M9’s price in order to attract consumers’ attention. This reflects a negative market reaction to the flagship,” the analyst said by telephone.
Last month’s launch of the M9’s variants, the M9 Plus and E9 Plus, might help sales pick up mildly this month and next month, the analyst said.
HTC’s revenue totaled NT$55.06 billion for the first four months of this year, down by 0.24 percent from last year’s NT$55.19 billion.