1.2 million HTC One handsets shifted in May but outlook is still gloomy

It looks as if HTC is mounting something of a comeback, with reports pegging sales of its HTC One handset at around the 1.2 million mark for May – the company’s highest sales figures for 11 months.

1.2 million isn’t bad but HTC is not yet out of the woods with Citigroup predicting more trouble just around the corner for the ailing smartphone maker. 

‘We expect HTC shipments to peak in May, stay at a similar level in June and start to decline in July,’ said Citigroup Global Markets analyst Kevin Chang. 

‘We estimate that HTC One accounted for around half of HTC’s May sales,’ Chang added. Without access to HTC’s official sales figures, Chang estimates HTC One shipments at around 1.2 million – up 100 percent from April.

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The HTC One received positive reviews across the board with some reports even declaring it the best Android phone ever created. Initial sales reflected this and despite HTC facing component shortages it still managed to surpass analyst forecasts.  

‘Citigroup originally forecast HTC would ship only 1 million HTC Ones last month before ramping it up further this month,’ reports Taipei Times.

‘Chang said he revised his shipment forecast upward because HTC’s component yield rate had improved faster than expected, which in turn had enabled it to push some shipments to last month from this month.’

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Chang believes HTC One sales have now peaked, just as they did last year following the launch of the HTC One X and HTC One S, with many consumers now holding out for the new iPhone.

Saturation in developed markets is also highlighted as a key factor affecting demand for the HTC One as we move through 2013, the report added.

Perhaps this is why HTC is planning a smaller, more affordable, version of its One handset and the rumoured T6 phablet. One device a year – the strategy allegedly adopted at the start of 2013 by HTC – will not cut it in today’s Android space.

To succeed you need product, a gargantuan marketing spend, and lots of choice. Don’t believe us? Just ask Samsung.