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HTC profits collapse 70% in face of competition from Apple, Samsung

post #1 of 111
Thread Starter 
Facing more intense competition from rivals Apple and Samsung, HTC announced on Friday that its pre-tax profits fell by almost 70 percent.

Total sales also fell by about a third in the first quarter of 2012, according to the Financial Times. The company said the products it launched in late 2011 did not match up well against Apple's iPhone 4S and the Samsung Galaxy Note.

HTC primarily relies on Google's Android mobile operating system for its phones, though it also sells devices running the Windows Phone platform. The company is the No. 3 smartphone maker in the world, behind Apple and Samsung.

HTC's disappointing results arrive as Samsung posted a record quarter with $5.1 billion in profit from $39.8 billion in sales. Samsung's first-quarter profit jumped nearly 100 percent year over year, while revenue increased by 20 percent.

Apple alone controls about 75 percent of the mobile industry's profits, and its next closest competitor is Samsung. Together, the two companies account for 90 percent of industry profits.




HTC officials admitted in February that their company was in the midst of a product transition that would hurt sales in early 2012. They specifically cited Apple's iPhone lineup and Samsung's smartphone offerings in the U.S. as the primary reason.

The smartphone maker also indicated in February that sales of its 4G LTE devices were lower than expected. HTC was one of the first companies to embrace high-speed long-term evolution wireless technology, while Apple recently introduced its first true 4G device, the new iPad, a month ago.

[ View article on AppleInsider ]
post #2 of 111
Good riddence..
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post #3 of 111
Samsung has an opportunity here to become the Apple of Android. Samsung should create its own fork of Android, its own appstore, cloud service, etc.

It probably wouldn't work because Samsung lacks the software expertise, but it's their best shot of moving into the same league as Apple, and Samsung is the only company in the world that has this opportunity. If Samsung can't seize this window of opportunity, then Apple will be unstoppable.

My guess is that this window of opportunity will stay open for about one more year.

I'm also guessing that Samsung will fail to seize it.
post #4 of 111
So the moral of the story; if you want to win copy Apple.
But I am sure some one will spin it in a different way.
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post #5 of 111
Quote:
Originally Posted by Blastdoor View Post

Samsung has an opportunity here to become the Apple of Android. Samsung should create its own fork of Android, its own appstore, cloud service, etc.

Samsung: "The Apple for the rest of us"
post #6 of 111
What happened to all those great Droid phones HTC were selling? Must have forgotten to build in some profit on the race to the bottom.
post #7 of 111
First, Android and Window 7 mobile are craps compare to iOS.

Secondly, HTC, unlike Samsung, never comes out with real attractive design model that can attract buyers to be excited about, some how i feel all their model design look quite the same as each other ( just look at the picture) in this stroy

Thirdly, I think the marketing and advertise team in HTC are really craps too. They don't seems to have very huge and exciting advertisement or events to catch attention to the consumer. I hardly notice that when they have new models coming out or that particular phone is actually a new model

Samsung does great in trying to come out with design that try to pull iPhone owner over and always have good advertisement, campaign and PR methods to catch attention on their up coming new models. They are even very good as using apple's strong name now and try to like fight law suit or say things bad about Apple products just to catch attaction.

I thing that is why HTC lost out a lot in market share to Samsung, not to even mention Apple
post #8 of 111
Good. These phone makers that do nothing but throw some open-source software on some cheap plastic and provide minuscule support for them need to go away.
post #9 of 111
Good one.

Quote:
Originally Posted by dav View Post

Samsung: "The Apple for the rest of us"
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Originally Posted by Granmastak: Labor unions managed to kill manufacturing a long time ago with their unreasonable demands. Now the people they were trying to protect, are out of a job.
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post #10 of 111
Are those its flagship phones because I only recognize one by name. The Rezound, and I'm not sure I knew it was an HTC phone.

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post #11 of 111
Quote:
Originally Posted by dav View Post

Samsung: "The Apple for the rest of us"

Samsung: "The Apple for the people without taste"
"I'm way over my head when it comes to technical issues like this"
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"I'm way over my head when it comes to technical issues like this"
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post #12 of 111
Beleaguered Motorola and HTC were first with Android, yet Samsung is the one soaring in the marketplace without a commensurate marketing effort.

Which goes a long way to prove that the more they copy Apple, the better their chances of prevailing --until they lose in court, that is.

If Apple's legal team are using this as proof to estimate damages, Samsung could end up having to pay Apple a googol dollars.
post #13 of 111
Quote:
Originally Posted by Iceltic View Post

So the moral of the story; if you want to win copy Apple.
But I am sure some one will spin it in a different way.

I'm glad that Apple aggressively sued Samsung because otherwise that's precisely the lesson companies would walk away with. At least now they have to consider the financial burden in legal settlements for resorting to copy-catting. How much of those profits will Samsung have to pour back into settlements awarded to Apple?
post #14 of 111
Quote:
Originally Posted by jragosta View Post

Samsung: "The Apple for the people without taste"

"iOS for for the apple community without talent"

so the claim of "having taste" is irrelevant... 200 dollars does not buy you "taste"
post #15 of 111
Another casualty of Android and Windows. R.I.P. HTC:-(
post #16 of 111
Their brand has no visibility, no presence.
Their phones look like "generic Android phones."
Their branding is a mess: Radar? Vivid? ReZound? You've got to be kidding me. If the average consumer (read: not hard core Fandroid) cannot explain the difference between these phones and their competitors, then HTC will continue to fail.

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"Apple should pull the plug on the iPhone."

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post #17 of 111
I hesitate to voice my opinion since it will probably be met with scorn but their latest device (HTC One X) has a hardware design I'd like Apple to take some note of. I love the large thin form-factor and weight, and I've always felt HTC's phones took the best photos in all kinds of lighting circumstances.

And yes - I am an Apple zeolet with only Macs, Ipads, and Iphones littered throughout my house.

I just feel Apple needs to make a marked change to their next Iphone's form-factor. 4G LTE to me is a feature I could care less about.
post #18 of 111
When you base your product on an Operating System that is FREE, then you are basing your business on a worthless Operating System because you didn't pay for it. Some things in life that are free end up being worthless. There is a difference between charging a reasonable amount of money, being gouged, to being hoodwinked into a worthless product. Oh well, you can lead them to water, but you can't make em drink it until they get thirsty enough.
post #19 of 111
Quote:
Originally Posted by dav View Post

Samsung: "The Apple for the rest of us"

Samsung: "The Apple for the rest of you"

There fixed it for you.
post #20 of 111
Quote:
Originally Posted by ijordan View Post

Good. These phone makers that do nothing but throw some open-source software on some cheap plastic and provide minuscule support for them need to go away.

Well, they are using a worthless (free) operating system. That worthless operating system makes their product worthless. hahahaha. I would rather pay a little more and get something that works or provides me with higher level of satisfaction.
post #21 of 111
HTC Radar...
post #22 of 111
Quote:
Originally Posted by Jsyedinak View Post

I hesitate to voice my opinion since it will probably be met with scorn but their latest device (HTC One X) has a hardware design I'd like Apple to take some note of. I love the large thin form-factor and weight, and I've always felt HTC's phones took the best photos in all kinds of lighting circumstances.

And yes - I am an Apple zeolet with only Macs, Ipads, and Iphones littered throughout my house.

I just feel Apple needs to make a marked change to their next Iphone's form-factor. 4G LTE to me is a feature I could care less about.


Hey, Apple isn't perfect. I have used Apple products since 1977 and have sold their products at various resellers and only use Apple phones, tablets, laptops and desktops that I currently own or have paid for over the years. Yeah, I know, sometimes I wish they did something slightly different. I wish they had a 15 inch iPad where they had various features because the screen size is suitable for my needs and it is still fits in a notebook format, just something thinner and easier to use for casual computing. Whether they do it or not, I don't know.
post #23 of 111
Quote:
Originally Posted by drblank View Post

When you base your product on an Operating System that is FREE, then you are basing your business on a worthless Operating System because you didn't pay for it. Some things in life that are free end up being worthless. There is a difference between charging a reasonable amount of money, being gouged, to being hoodwinked into a worthless product. Oh well, you can lead them to water, but you can't make em drink it until they get thirsty enough.

You realise that the core of iOS and OSX is free too? Is Mach worthless because it's free?

Logic fail.
post #24 of 111
Quote:
Originally Posted by drblank View Post

Some things in life that are free end up being worthless.

Common Wisdom: The best things in life are free.

Apple: You can tell that to the birds and the bees. I want money. That's what I want.
post #25 of 111
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

Common Wisdom: The best things in life are free.

Apple: You can tell that to the birds and the bees. I want money. That's what I want.

What are the best things in life?

Should Apple want to turn bellyup instead?
post #26 of 111
Quote:
Originally Posted by Postulant View Post

What are the best things in life?



Nicely designed gadgets?
post #27 of 111
Quote:
Originally Posted by AppleInsider View Post

HTC primarily relies on Google's Android mobile operating system for its phones [...]

Well there's your problem. Samsung is crushing all other droid makers. That's the proverbial "rock."

Quote:
Originally Posted by AppleInsider View Post

[...] though it also sells devices running the Windows Phone platform.

Not helping much, evidently. That's the proverbial "hard place."

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post #28 of 111
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

Nicely designed gadgets?

Mmmmhmmm.
post #29 of 111
Quote:
Originally Posted by Postulant View Post

HTC Radar...

HTC Resist
HTC Regret
HTC Remorse
HTC Return

HTC Dread
HTC Dregs
HTC Dreck
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post #30 of 111
Quote:
Originally Posted by Blastdoor View Post

Samsung has an opportunity here to become the Apple of Android. Samsung should create its own fork of Android, its own appstore, cloud service, etc.

It probably wouldn't work because Samsung lacks the software expertise, but it's their best shot of moving into the same league as Apple, and Samsung is the only company in the world that has this opportunity. If Samsung can't seize this window of opportunity, then Apple will be unstoppable.

My guess is that this window of opportunity will stay open for about one more year.

I'm also guessing that Samsung will fail to seize it.

actually, Samsung is trying to build its own ecosystem now centered on its new 2012 Smart TV line, not its mobile devices. check them out ($2000-$3000 at Amazon). basic gesture and voice UI, face user recognition, and a batch of standard HDTV apps. but at the moment they are stand alone, not linked to Samsung's other products or UI, like TouchWiz on its Android phones. there is no AirPlay equivalent. i assume this will change pretty soon ...

Samsung has no music/media store yet either, and there is no such app yet on its Smart TV's (just a MOG subscription). and the only Google app on the Smart TV is Google Talk for messaging, so Samsung obviously is not going to depend on Google for anything in its own would-be "walled garden."

Sony is also building its own ecosystem centered on its new Internet TV's that have many of the same apps. Sony has more to offer, with its own Sony Entertainment Network media store and PlayStation game products that are linked with its line of Android phones and tablets too. some also have GoogleTV built in.

but i doubt these new TV-centered initiatives will succeed much. except for gadget lovers (maybe 5% of the consumer market), i don't think people want to center multiple aspects their everyday lives around their big screen HDTV in the living room. the real "hub" device for anyone's ecosystem is more likely to be their handheld phone or tablet that they can tote with them everywhere they go, and quickly/easily do a lot of more complicated everyday stuff with too, like pay bills. and you can stream your TV watching to them if you want - all you need is a Slingbox.

actually, the center of our home ecosystem has - without planning - become the iMac in our kitchen nook/office. we spend more time in the kitchen than any other room in the house anyway. we use it as our 27" kitchen TV via SlingPlayer a lot, either full screen or in a smaller window while doing something else on it. the iMac contains all our files of course. use its AirPlay to stream music to the living room and patio speakers. use FaceTime on it too. also control some lights with SmartLinc (and much more capable new smart home devices are becoming available). our iPad/iPhone can do many of these things too, but only use them when we are in other rooms in the house - especially when watching that big screen HDTV (with its Apple TV)!

so if you think instead of that same iMac as a 27" smart HDTV (which in fact it is) instead of a desktop PC, it can do everything Samsung and Sony are trying to do with their Smart/Internet TV's and much more - and more conveniently.

actually, i'm not sure what else the much rumored Apple TV (iPanel?) will do on a big Apple screen in my living room that i actually need anything to do there at all. sure, the Apple TV could be built in and the UI could be slick. that's cool, but not really necessary. i guess i'll just have to wait and see what Apple has up its sleeve ...
post #31 of 111
Quote:
Originally Posted by Alfiejr View Post

there is no AirPlay equivalent. i assume this will change pretty soon ...

Didn't they announce SwipeIt at this year's CES?

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #32 of 111
And the reason why HTC is failing in the smartphone market is because it manufactures 6x different models and types of android phones, if they wanted to emulate Apple, they would have only one model and make it the best phone they can make.
post #33 of 111
Quote:
Originally Posted by crawdad62 View Post

Samsung: "The Apple for the rest of you"

There fixed it for you.

uh... no thanks, i like mine better.
post #34 of 111
Why are articles about Samsung revenue in the General Discussion forum but HTC revenue is in the iPhone forum?
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post #35 of 111
Quote:
Originally Posted by zindako View Post

And the reason why HTC is failing in the smartphone market is because it manufactures 6x different models and types of android phones, if they wanted to emulate Apple, they would have only one model and make it the best phone they can make.

They had well over x6 models last year, and that was the biggest problem was them releasing too many models. Too many mediocre devices, with some models being exactly the same as the previous but with "Beats by Dre".

So far it seems they've learned from their mistakes and cut that list of devices down tremendously. They have a low end model with the One V that can be had off contract for roughly 300 bucks. Their "midrange" in the One S is a definite performer with the Qualcomm Krait processor, and their halo device with the One X, the benchmark for Android phones this year.

All of these devices are launching with Beats, Android 4.0, and the latest version of Sense.

I'd say HTC is off to a pretty good start on the Android front, but they need to drop Windows until they launch Windows Phone 8 or Apollo or whatever its called
post #36 of 111
Quote:
Originally Posted by dav View Post

Samsung: "The Apple for the rest of us"

Us?
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Been using Apple since Apple ][ - Long on AAPL so biased
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post #37 of 111
I've said it before and I'll say it again: Samsung is going to become the de facto Android handset manufacturer. Google's only hardware partner that matters.

LG is losing money, Sony is irrelevant, HTC was hanging in there but the trend is bad, Moto will make low selling reference handsets for Google's pointless efforts to take control back of their platform.

Samsung will feel they have earned the right to treat Android as their own, modifying as they see fit, and certainly moving to bring former Google services in house (think their recent ad initiative). No, they won't be as good, but as the only viable Android partner, what can anyone do? I think Android will become as much Samsung's as Google's, if not more.
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post #38 of 111
Samsung: "The Apple for the 'Meh too' or 'good enough, and I hope you can't tell it's not Apple' crowd"

Quote:
Originally Posted by digitalclips View Post

Us?

Quote:
Originally Posted by dav View Post

Samsung: "The Apple for the rest of us"
Originally Posted by Granmastak: Labor unions managed to kill manufacturing a long time ago with their unreasonable demands. Now the people they were trying to protect, are out of a job.
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Originally Posted by Granmastak: Labor unions managed to kill manufacturing a long time ago with their unreasonable demands. Now the people they were trying to protect, are out of a job.
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post #39 of 111
Quote:
Originally Posted by Flash_beezy View Post

Good riddence..

I'm with you - suspect alot of HTC's problems arose from making crappy products. I've bought my last one.
post #40 of 111
Quote:
Originally Posted by zindako View Post

And the reason why HTC is failing in the smartphone market is because it manufactures 6x different models and types of android phones, if they wanted to emulate Apple, they would have only one model and make it the best phone they can make.

They heard you before you spoke. This year they are releasing three phones - one in each of three different price brackets.

Problem is, they will probably be repackaged at request of US carriers and will look like 10 phones instead of three.

That is what apple did well limiting themselves to one carrier in the beginning. A new phone would not have had the clout to not be branded and made different by multiple carriers. By the time they dropped their exclusivity, they were in such demand that apple called the shots, not the carriers.
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