HTC Sales dip in May despite the release of the HTC One M8

HTC has released details for monthly revenue in May. The results are basically the opposite of their positive sales gained in March and April. The Taiwan based mobile manufacturer posted a month-on-month drop of 4.59% in May with a year-on-year decline of 23.37%. Monthly revenue for the company currently rests at NT$21,065 million.

This decline in sales is another daunting sign for HTC. The company has been struggling financially over the past few years due to the more competitive Android market. Korean manufacturer Samsung currently dominates the Android ecosystem which lead to a run of declining quarters for HTC. This resulted in the company’s first quarterly loss back in Q3 2012.

HTC also sold off their stake in Beats last year to avoid another quarterly loss. Unfortunately, this didn’t particularly help the company after they fell back into the red Q1 this year. HTC would have received a larger amount of money had they held onto their stakes considering the recent acquisition of Beats by Apple for $3 billion.

This news is somewhat surprising given the company’s resurgence in a number of ways. At the end of Q1 this year, HTC unveiled the HTC One M8 as a successor to the critically acclaimed 2013 flagship. Like it’s previous iteration, the device was very well received with many dubbing it as the best Android smartphone to release so far this year. The HTC One M8 was designed to specifically compete with the Samsung Galaxy S5 and Apple iPhone 5S.

However, HTC is expanding into the mid range market with the recently announced HTC One Mini 2. This device is aimed at the budget user, an increasingly important market as shown with the not so great iPhone 5C and the recently confirmed Samsung Galaxy S5 Active. The budget market has begun to grow with more smartphones being sold in developing countries.

The HTC One Mini 2 is planned for release this month, which may help boost sales for the company and keep them from the red this quarter. Some financial analysts believe the month of May was merely a bad month for HTC, expecting a recovery this month forward. When the Q2 reports are released, many will be able to gauge exactly how the company is performing on the whole.

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