The One gives HTC both hope and profit in the second quarter

As with most things involving HTC, the company’s latest earnings are full of news both good and bad.

The good news is that thanks largely to the HTC One, HTC did indeed turn a profit this quarter: $41 million on $2.35 billion of revenue. The bad news: That profit number is an 83 percent decrease compared to the same period last year, when HTC reported profit of $246 million. (In contrast, Samsung just reported profits of $8.3 billion for the second quarter. No big deal.)

What’s most notable, though, is how HTC second quarter compares to its dismal first quarter, when it pulled in a record-low $2.8 million. A 1,364 percent increase in profit quarter-to-quarter isn’t something to take lightly.

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That HTC managed to do so well is its own kind of miracle. Not only did supplier issues push the launch of the One dangerously close to that of Samsung Galaxy S IV, but HTC also had to deal with the disastrous Facebook Home-equipped HTC First, which was discontinued just weeks after its launch. (The company also lost quite a few execs this quarter, which probably didn’t help any of this.)

So things could, in a very real sense, be a lot worse. But will they get better? One of the big challenges for HTC going forward is maintaining the momentum it’s created with the One, which is probably the best Android phone created so far.

So far, most signs point to HTC’s next move being something like the HTC One Mini, which will take the One’s best features and squeeze them into a (slightly) smaller package. Beyond that, however, HTC’s plans are anyone’s guess.