Taiwan’s HTC on Tuesday declared worse than expected fourth-quarter results and analysts aforesaid its much-hyped virtual reality merchandise had unsuccessful considerably to spice up the troubled smartphone maker.
Revenue from October to December was down thirteen.62 % year-on-year to TWD twenty two.2 billion ($720 million or roughly Rs. 4,820 crores).
The net loss was TWD three.1 billion, an improvement on the year-before loss of TWD three.4 billion, a company statement said.
It marked the seventh consecutive quarter of losses for HTC, once a star of the intensely competitive smartphone sector.
For the of 2016 HTC posted revenue of TWD seventy eight.16 billion, down 35.77 % from the previous year. Losses narrowed 32 % to TWD ten.5 billion from a year earlier, mainly due to non-operating gains like on interchange.
“The results were much worse than expected. Although its VR line launched in Apr helped revenues, the scale is simply too small to offset fast sales declines of its smartphones,” said Jeff element, an analyst at Yuanta Securities.
The homegrown Taiwanese complete has been troubled in the face of stiff competition from international rivals Apple and Samsung moreover as robust Chinese brands like Huawei.
The company said its new smartphone models launched within the fourth quarter had been well received, as it continued to create the HTC Vive video game system – together with gap the primary Vive-based arcade in capital of Taiwan.
“We have learnt much from our entrance into the world of video game, and we believe that our HTC VIVE is at the forefront of that market,” said presiding officer and chief executive officer Cher Wang in a statement.
The company is one in all the first players to venture into video game and has spearheaded an off-the-cuff alliance to develop the arena which has Warner Brothers, Alibaba and Valve.
Research firm CCS Insight predicts sales of virtual reality devices can grow from two.2 million last year to twenty million in 2018, with smartphone-based devices representing the majority.