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Despite the launch of its latest flagship smartphone, the HTC 10, in April, HTC reported a net loss of NT$3.1 billion (£74 million) in the second quarter of 2016.
The latest figures follow a net loss of NT$2.6bn (£62m) in the first quarter. The Taiwanese firm has now recorded a loss in the last five financial quarters.
For the period April to June 2016, HTC recorded an operating loss of NT$4.2bn (£1bn) with an operating margin of minus 22.5 per cent. This was a slight improvement on the minus 32.4 per cent last reported in its earnings last quarter.
HTC said this growth in gross margin resulted in a 27 per cent rise in revenues from the first quarter after an adjustment in the company's product portfolio of more high-end models.
Chang Chai-lin, president of global sales at the Taiwanese firm, said shipments of the HTC Vive, the firm's virtual reality headset, were expected to increase quarter by quarter in the second half of the year. The company is hoping this will help it break even in the third quarter.
Despite the huge losses, HTC chairwoman and CEO Cher Wang said it had been an "exciting quarter" in HTC's "Pursuit of Brilliance".
HTC said it had spend 2016 “building a robust ecosystem” through collaboration with content developers, infrastructure partners, and strategic industry partners, including the creation of content spanning multiple sectors such as entertainment, retail, education, design, healthcare and automotive.
“To ensure wide availability, there has been an aggressive program of regional and channel expansion across the US, Europe and Asia,” the firm added. Although the delayed shipments of its VR headset probably didn't help matters. HTC Vive was one of the most anticipated virtual reality headsets, but endured several launch problems.
Company representatives had to respond to several complaints of delayed shipments and an error-prone payment processing.
This article was originally published by WIRED UK
