HTC posts record drop in profits, no signs of a revival

Taiwanese smartphone manufacturer HTC today announced its quarterly results and they did not bring good news for the company investors, as the company posted a record 79 per cent drop in quarterly profit.

Just giving you a quick break up of numbers, you can always find the full results at the HTC website:

  • HTC’s third-quarter net income slumped to NT$3.9 billion
  • Third-quarter revenue fell 48 percent to NT$70.2 billion
  • Unaudited operating income was NT$4.9 billion,
  • Net income before tax was NT$4.0 billion,
  • Unaudited earnings per share after tax were NT$4.70 based on 831,227 thousand weighted average number of shares.

But why?

Apart from One X, I haven’t seen a cracker of a smartphone in the last two years from HTC. Company has launched some decent devices but in the current market conditions decent devices do not work. On the other hand, company competitor Samsung had launched four big devices and several other more than decent phones: Galaxy S II – a huge hit, Samsung Galaxy S III – an even bigger hit, Samsung Galaxy Note – a new device segment and a decent hit and Note II has just arrived.

Company needs to innovate and innovate fast, bring two really great smartphones every year and plus several more than decent smartphones for every budget.

How can HTC expect to One V or Desire V to compete with Samsung Galaxy S Advance or Xperia sola, Xperia U, when every single phone of the three outperforms both of the HTC mid-range devices and this is just an example.

Another reason, poor marketing – where are your marketing folks HTC? I might have seen some marketing efforts for One X, although those efforts too seem invisible, rest there is no or very little effort for other devices. If consumers won’t know about your devices, how are they going to buy them?

HTC might not have become a Nokia or RIM, but they are very well on that path. The company needs some real introspection.


Post Author: Gaurav Shukla

Gaurav Shukla is the editor of AndroidOS.in. If you'd like to reach him, drop an email at 'gaurav@androidos.in' or connect with him on Twitter (@gauravshukla).

5 thoughts on “HTC posts record drop in profits, no signs of a revival

    Kaushik

    (October 9, 2012 - 12:18 pm)

    One thing that I think works poorly for HTC is their low phone memory (not card memory, not RAM, but phone memory – ROM). This is especially so for mid range phones.
    Sense is heavy and has a lot of apps that one doesn’t need. They eat up the paltry 368 or 512 MB phone memory and can’t be removed or pushed to the card.
    The only HTC phones worth having, then, are the ridiculously priced top end phones, where they are NOT the leader now.
    Time for them to look at the mid range.
    And time for them to look at the customer service which is pathetic in India, to say the least.

    Ankush Kaul

    (October 9, 2012 - 11:22 am)

    Undoubtly HTC has one of the Best Smart Phone UI and i always recommend it to a newbie android user, i am still struggling to get that kind of integration in samsung and even andriod custom roms!

    But the dragged themselves down by not getting a single decent mid-range phone. Their dual core starts from 30k :O and for 22k you just get a single core -_- And also the battery.

    Only new good mid-range phones (dual-core) with good battery can save them!

      Androidguy

      (October 9, 2012 - 3:59 pm)

      Htc desire x is dual core and mid range

    Sid

    (October 9, 2012 - 5:59 am)

    Another of the biggest reason’s HTC is failing and i told many of my friends they had it coming form past 1.5 years .
    is instead of working on making the skin as light as possible like everyone else HTC took the opposite step and kept making it heavier and heavier.
    They dont make the thinnest phones yet they decide to gimp every single one of their phones with shit capacity battries there is no excuse for this specially when they aren’t even competing to be thin .
    Bad marketing terrible mid range phones over priced and under specced is an understatement .
    contradictory statements dont help also when they cant realese updates for devices like HTC desire HD but release new phones with ICS with much shittier spec’s company deserves everything they have coming imo .

    Prithvi

    (October 8, 2012 - 10:54 pm)

    Sad for a co. when it seemed to get it right with their One Series … perhaps late in the day now. R.I.P hopefully not for HTC.

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