June 4, 2013
Another HTC executive has stepped down from his post at Taiwan’s largest Smartphone producer, amidst financial turmoil within the company.
Chief Operations Officer Matthew Costello has resigned from his position after less than three years with the company, according to CNet news, but has opted to stay with HTC as an executive advisor.
In an e-mail sent out to employees of the company that was later obtained by Bloomberg Businessweek, president of engineering and operations Fred Liu said he will take on Costello’s responsibilities while also juggling roles covering operations, quality, sales operations and services.
Costello isn’t the first to leave his position.
HTC’s chief product officer Kouji Kodera, who led product strategy for the firm, quit last month.
Gone from HTC’s Seattle-based office are Jason Gordon, the company’s vice president of global communications, global retail marketing manager Rebecca Rowland, director of digital marketing John Starkweather and product strategy manager Eric Lin.
In a recent tweet Lin advised his former co-workers to quit.
“To all my friends still at @HTC – just quit. leave now. it’s tough to do, but you’ll be so much happier, I swear.”
HTC has been unable to compete with against Apple and Samsung and slumping revenues have plagued the company since 2011. Since that time, shares have dropped more than 76 percent, while HTC’s net income plummeted 98 percent in the last quarter.
The HTC First, also known as the Facebook phone because the social network is pre-installed on the device, was another blow to the company.
AT&T, reportedly, plans to discontinue the “Facebook phone” and unsold inventory will be returned to HTC. And that inventory is likely to be considerable because sources have said AT&T sold fewer than 15,000 devices nationwide, even after the price was cut down to less than one dollar.
The price for the device, being sold exclusively by AT&T, went from $99 to 99 cents with a two-year contract — an obvious bid to get rid of inventory — one that didn’t work.
HTC, however, reported it’s highest revenue in the past 11 months for the month of May, according to the Wallstreet Journal. This may be good news for HTC, because it’s chief executive Peter Chou also threatened to leave the company if its latest product, the HTC One, fails to thrive.