The power of One: HTC forecasts 63% sequential growth in Q2. Peter Chou might keep his job afterall

HTC may finally be turning its fortunes around.

Today HTC reported its first quarter results, and they were terrible. Revenues were 37% lower than last year – $NT 42.8 billion vs $NT 67.8 billion, and profits dropped to a miniscule $NT 85 million ($2.8 million) – a whopping 98% decline.

But we already knew that. HTC released those numbers in early April, together with their monthly sales report, so there’s no point in rehashing them. What’s much more interesting – is the guidance they provided for the second quarter of this year. And HTC execs do feel very confident about their immediate future.

HTC expects April-June revenues to be $NT 70 billion. Which is 63% more than they brought in in Q1. A really impressive growth, no matter how you look at it. And since the only significant thing that changed in Q2 – was the launch of HTC One, we can safely assume that most of that growth comes from the new flagship.

HTC One

Of course, this only the management guidance. Over the last two years, HTC execs have not been too reliable with their sales forecasts, coming up short of projections time and time again. But the latest HTC shortfall was mainly due to the unexpected production delays of the new One flagship, which pushed a lot of sales into the next quarter. We are also now well into Q2, so HTC probably already has signed customer contracts/commitments at least into beginning of June. And, with its main competitor – Samsung Galaxy S4 – already shipping worldwide, HTC managers should already be aware how their device stands-up to Samsung’s. If they are confident to project a big sales bump, HTC One should be doing pretty well.

Of course, the million dollar question is – can HTC sustain this momentum for more than a couple of months. After all, last year HTC also had a great Q2 when their new One line started shipping. But then sales sharply dropped off in Q3 as Samsung’s Galaxy S3 sales went into full swing, and iPhone 5 launched. HTC says that they have learned from the past mistakes and won’t repeat them this year. They have already earmarked enough marketing money to sustain HTC One’s momentum after strong launch, to keep it going all through the second half of 2013.

Lets see if it actually works, and if Peter Chou gets to keep his job afterall.

Author: Stasys Bielinis

While I like to play with the latest gadgets, I am even more interested in broad technology trends. With mobile now taking over the world - following the latest technology news, looking for insights, sharing and discussing them with passionate audience - it's hard to imagine a better place for me to be. You can find me on Twitter as @UVStaska'

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  • MoshuXXL

    I think they will succeed selling enough Ones, but in order to keep growing they also need faster software updates for longer time and better after sale support.