HTC Posts Catastrophically Large Loss In Q1 2014

HTC’s disastrous time in the global smartphone arena continues befuddle analysts with the firm’s net loss of T$1.88 billion [£37.43 million] in Q1 2014 confounding even the most optimistic of observers.

The Taiwanese-based company’s net loss for Q1 2014 was far worse than the projected T$1.59 billion [£31.65 million] and is being blamed on a flawed marketing strategy that stunted the growth of the former flagship HTC One smartphone.

HTC’s latest net loss came after it posted a profit of just T$85 million [£1.69 million] in the same period 12 months ago and its revenue suffered a similar fate as it dropped by 22.6 per cent to T$33.12 billion [£659 million].

When it came to the firm’s advertising around the HTC One, Reuters reports that it was “heavily criticised” for being confusing and this translated into the exceptionally poor revenue figures. Taipei-based brand consultant Mark Stocker suggested that the company takes a page from Apple’s book and develop an image strategy that works.

"Mimic them, but figure out what your brand stands for," said Stocker. "If Apple is Mercedes Benz, try to make yourself BMW."

The HTC One M8 is the new device that the firm is pinning its hopes on and many will be looking to the company’s marketing strategy, as the device itself has only impressed some.

"The M8 is good, but it's not as revolutionary as the previous flagship," said Yuanta Securities analyst Dennis Chan. "Everyone is watching the second quarter to see how it sells."

The HTC One M8, which was released late last month, scored as highly as 4.5 out of five on ITProPortal.com’s review and has simply built on the acclaimed HTC One’s stellar layout of popular features. Though it could all count for nothing if the firm doesn’t sort out its marketing strategy.