HTC posts profit in second quarter with the help of One (M8) smartphone

HTC showed signs of life Thursday, reporting a net profit of $75.5 million for the quarter ending June 30.

Despite the positive results, analysts remain skeptical of the company’s long-term fortunes.

The Taiwanese company’s second-quarter net profits were an 80% improvement from its results a year ago, and they end a string of three consecutive quarters in which the company posts an operating loss. In the previous quarter, HTC had posted a net loss of $62.8 million.

Leading the way for HTC in the second quarter was its new One (M8) flagship smartphone. The device was launched in late March, just before the start of the second quarter, and it was received with positive reviews. HTC has not disclosed sales of the gadget, but it has said that the device is outperforming its predecessor, the 2013 HTC One.

HTC also helped its second quarter fortunes by launching the Desire 816, a low-cost device intended to help the company compete in emerging markets. HTC also made efforts to cut costs during the period, with Chief Financial Officer Chialin Chang saying in May that the company would scale back its sales and marketing.

Gartner principal research analyst Hugues J. De La Vergne said that while it’s good to see the Taiwanese company gain traction, HTC faces an uphill battle against Apple, which is likely to release a new iPhone with a bigger screen in the next few months.

“Growth for someone like an HTC is going to be really difficult in this extremely competitive environment,” De La Vergne told The Times. “Things are only going to heat up with the iPhone 6 making it more difficult for HTC to grow market share.”

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