HTC losing money fast: Monthly sales slump 67%, company to lay off 22% of its workforce

HTC logos near a showroom

HTC might’ve been able to stay a bit longer in the game than other established players (i.e. Nokia, BlackBerry), but things are not looking any better for it now. In fact , now HTC losing money very quickly as in June company’s sales dropped to NT$2.23 billion, which is a slump of 67% in comparison to sales of June 2017. Comparatively, last year company had made sales of NT$6.9 billion in the same month, while in May 2018 it made sales of NT$2.45 billion. So, the revenue is down about 9% even if compared with the revenue a month before. On the other hand, this slump of 67% when compared with June revenue of last year is company’s biggest slump in more than two years according to Reuters.

The monthly sales, however, are just one data point in a series of bad news coming for the beleaguered smartphone maker. If we look on quarterly numbers then in Q2 of 2018 company has made revenue of NT$6.77 billion only, which is 24% less than the revenue in Q1. Plus, it’s 58% less than Q2 revenue of last year, which was NT$16.136 billion. The company has had 11 consecutive quarters of loss despite posting a profit in Q1 2018. In short, HTC losing money fast… very fast!

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Now we’re hearing that company will lay off 1,500 employees (about 22% of total workforce) to streamline its operations and cut costs. This news was broken by Bloomberg’s Taipei bureau chief Samson Ellis.

HTC, which once was 4th largest smartphone maker in the world (2012), has today slipped below Samsung, Apple, Huawei, Xiaomi, Oppo, Lenovo and LG. The company known for making premium devices with big screens is expecting early adopters to purchase its HTC U12 smartphone released last month to revive its sales.

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