HTC One M8 Helps Company Beat Profit Estimates

July 3, 2014 by

HTC's second-quarter profit exceeded analyst estimates, due to unexpectedly strong sales of the HTC One M8, released in March 2014. (Read our full review of the HTC One M8.)

Bloomberg reported this morning that HTC's income was $76 million in the quarter.

"The HTC One M8, released in March as the company’s main product for the year, helped drive the largest monthly sales growth since 2011 in April," wrote Bloomberg's Tim Culpan. "Earnings would return to profit for the June quarter with sales climbing throughout this year, Chief Financial Officer Chang Chialin told investors in a May 6 conference call.

"Beyond M8, a high-end thin, metallic handset released in March, HTC is also looking to its mid-end Desire series to sustain sales momentum throughout the year," Culpan wrote. "Wearable devices and a tablet to be released later in the year may also help boost sales."

Update (July 15): Gigaom reported today that two HTC executives were fired: chief marketing officer Ben Ho and president of engineering and operations Fred Liu.

"The company eked out its first profit in nearly two years just last month but the results were influenced more by cost-cutting measures than stellar sales," wrote Gigaom's Kevin C. Tofel. "Better marketing will surely help HTC, provided it can keep innovating with its mobile devices."

So, perhaps HTC's profitable Q2 wasn't due to handset sales after all.

Posted in: Google/Android, HTC, Industry News