HTC posts loss in Q2, will cut jobs and phone models

Times are tough for HTC. The Taiwanese phone maker has announced (PDF) its Q2 2015 financial results with a loss of NT$5.1 billion ($157 million) on revenues of NT$33 billion ($1.04 billion).

This drop is a considerable one from the year-ago quarter (PDF), in which the company posted a profit of NT$2.3 billion ($87 million) on NT$65.1 billion ($2.12 billion) in revenues. HTC cites weak demand at the high end of the Android phone market and slow sales in China as the main contributors. The situation won't likely improve soon, since the company expects revenues to fall an additional 30-40% while it gross margin remains razor thin at around 19%. For reference, Apple's recent results show the fruit-flavored company enjoys a 39.7% gross margin.

HTC is trying to turn its fortunes around, however. Reuters reports the company will cut jobs and reduce the number of phone models it produces. Chief Financial Officer Chialin Chang told reporters that cuts will be significant across the board. Taiwan's SinoPac Securities analyst Calvin Huang is less optimistic, and recently wrote, "We believe HTC will keep losing share in the smartphone market and will keep losing money."

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