HTC’s struggles in the smartphone market look to have worsened following news that the company suffered its third straight net quarterly loss.
The Taiwan-based phone maker reported a net loss of $138m for the three months ending 30 September. The company’s standing in the smartphone market looks increasingly fragile given that its revenue has almost halved within a year after it dropped from $1.29m to $0.6m.
The news of downbeat results is unlikely to come as a surprise given that HTC announced in August that it would cut 15 per cent of its workforce in a series of restructuring efforts designed to declining demand and weak sales in China.
HTC’s failings have saw it slip from the being one of the world’s top smartphone makers by volume with a double digit market share to now having less than 2 per cent of the smartphone market. In recent years it has struggled to keep pace with international rivals Apple and Samsung while losing out to Chinese brands like Huawei which has expanded its market share.
Marketing may be the reason behind the giant's tumble given that it has spent nowhere near as much as Apple and Samsung in recent years. In 2013 Samsung spent $363m in marketing in the US while Apple spent $350.9m however HTC spent just $75.8m for the entire year.