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HTC revenues down 27%, blames competition

post #1 of 24
Thread Starter 
HTC lowered its guidance after missing analysts' expectations and reporting a 27 percent drop in revenues and a 57 percent drop in operating profits. The company's slide is being blamed on increasing difficult competition in the smartphone arena.

HTC was once a rising star, posting regular sales gains as a primary, higher end Windows Mobile licensee. It then partnered with Google in 2008 to introduce the first Android phone, Dream/G1, and has since continued to produce both Android and Windows Phone 7 models.

However, unlike Samsung, HTC primarily makes only higher-end smartphones, putting it into direct competition with Apple, the only other mobile vendor focused exclusively on the premium smartphone market.

HTC has also streamlined its product mix to be more like Apple, creating the "HTC One" to replace a series of confusing, overlapping smartphone models.

While Samsung recently reported sales of twice as many smartphones as Apple, it earned only half as much money because the company relies upon sales of low end models. Of the 52 million devices Samsung was estimated to have sold, only 10 million of those were its top of the line Galaxy S III.

All of the 26 million smartphones Apple sold were iPhones, and most of those were the newest iPhone 4S.

HTC continues to cite "intensified competition in the smartphone market" as a primary threat, noting that it plans to "strengthen execution to get ahead of competition" and "deliver a comprehensive range of products to offer customer choice."

Also faces legal action

In March 2010, Apple engaged HTC in a patent dispute with the US International Trade Commission, asserting more than 20 patents and asking for a injunction against HTC's infringing products.

HTC subsequently paid $300 million for a stake in S3 Graphics hoping to use the company's patent portfolio to defend itself from Apple, but the iPhone maker was not found to infringe upon those acquired patents. HTC then acquired two patents from HP that it is using to countersue Apple.
post #2 of 24
Quote:
 "strengthen execution to get ahead of competition" and "deliver a comprehensive range of products to offer customer choice."

 

Gobbledygook.


Edited by Quadra 610 - 8/3/12 at 12:29pm
post #3 of 24
Quote:
Originally Posted by Quadra 610 View Post

 

Gobbledygook.

 

Exactly.  When I read that, I immediately thought of my favorite management BS-generator:

http://www.andrewdavidson.com/gibberish/

post #4 of 24

Bad news for Google. 

 

If Samsung is the only company left standing selling Android, Google's position will be greatly weakened. All we need now is for Samsung to fork Android and Google's failure will be complete. 

post #5 of 24
Originally Posted by Blastdoor View Post

All we need now is for Samsung to fork Android and Google's failure will be complete. 

 

Or Apple to fork Samsung in trial.

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post #6 of 24

So why doesn't HTC start selling low-end phones like their competition?

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post #7 of 24
Quote:
Originally Posted by jd_in_sb View Post

So why doesn't HTC start selling low-end phones like their competition?

 

They do:-

 

http://www.gsmarena.com/htc_explorer-4102.php

 

HTC's big mistake was treating Apple as their enemy, when it is Samsung and their overhyped marketing that is the bigger threat.

 

It seems Apple is the only company capable of withstanding Samsung's march to total domination.

 

TouchWiz will reign supreme.

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Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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post #8 of 24

The problem is HTC got its start in the Cell Phone business via Motorola, HTC was Motorola ODM for low end phones HTC learn everything about phones from Motorola. The interesting part of this is HTC numbers began to drop off shortly after Motorola cut them off a an ODM for them. HTC is just another coping machine, they have no original ideas of their own they just refine what others company are doing ahead of them. With Apple on the attack they do not know what to do, as an example they made a really bad work around for the http links in an email. They have no idea what is important unless someone tells them like Motorola did for years.

 

Just add them to list of Dead cellphone companies, HTC will fall as will RIM and maybe Nokia, but rumor has it that Levono is looking at RIM.


Edited by Maestro64 - 8/3/12 at 2:33pm
post #9 of 24

HTC keeps making poor design decisions.  The fact that the One X did not have a micro SD slot or removeable battery is a big negative compared to the S3.  It also doesn't help that they still do not have a model to compete with the S3 at all on Verizon.

post #10 of 24
Quote:
Originally Posted by Maestro64 View Post

The problem is HTC got its start in the Cell Phone business via Motorola, HTC was Motorola ODM for low end phones HTC learn everything about phones from Motorola. The interesting part of this is HTC numbers began to drop off shortly after Motorola cut them off a an ODM for them. HTC is just another coping machine, they have no original ideas of their own they just refine what others company are doing ahead of them. With Apple on the attack they do not know what to do, as an example they made a really bad work around for the http links in an email. They have no idea what is important unless someone tells them like Motorola did for years.

 

Just add them to list of Dead cellphone companies, HTC will fall as will RIM and maybe Nokia, but rumor has it that Levono is looking at RIM.

 

Nope, HTC got their start due to Microsoft betraying Sendo.

 

Edit corrected thanks to RichL


Edited by hill60 - 8/3/12 at 5:04pm
Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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post #11 of 24
Quote:
However, unlike Samsung, HTC primarily makes only higher-end smartphones, putting it into direct competition with Apple, the only other mobile vendor focused exclusively on the premium smartphone market. 

 

More DED bullshit. HTC makes plenty of low-end Android phones.

post #12 of 24
Quote:
Originally Posted by hill60 View Post

 

Nope, HTC got their start due to Microsoft betraying Psion.

 

Not quite. It was Sendo, not Psion, that Microsoft betrayed. Sendo went bust a few years later.

post #13 of 24
Quote:
Originally Posted by RichL View Post

 

Not quite. It was Sendo, not Psion, that Microsoft betrayed. Sendo went bust a few years later.

 

Thanks for the correction,I knew it was a UK PDA maker, got the wrong one.

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post #14 of 24

I have two friends with EVOs. Both have had to replace their phones multiple times.

 

OF COURSE folks are going to their competition! Who wants to buy HTC with quality like that?
 

post #15 of 24
Quote:
Originally Posted by RichL View Post

 

More DED bullshit. HTC makes plenty of low-end Android phones.

 

Hey, I've got one of those, I wonder when I'll get Ice Cream sandwich.

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post #16 of 24
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post #17 of 24

Maybe Nokia and HTC can merge.  It might give them another year or two of life.

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post #18 of 24
Quote:
Originally Posted by jd_in_sb View Post

So why doesn't HTC start selling low-end phones like their competition?

 

They're too obsessed with out-Apple-ing Apple (like other unfortunates in the industry.)  But have about a 1/100th of what it takes to actually do that. 

post #19 of 24
Quote:
Originally Posted by Quadra 610 View Post

 

Gobbledygook.

It's corporate-speak. It doesn't matter what company says it. Statements like that are meaningless.

Quote:
Originally Posted by Quadra 610 View Post

 

They're too obsessed with out-Apple-ing Apple (like other unfortunates in the industry.)  But have about a 1/100th of what it takes to actually do that. 

Bleh for once I somewhat agree with you.

post #20 of 24
Quote:
Originally Posted by gwlaw99 View Post

HTC keeps making poor design decisions.  The fact that the One X did not have a micro SD slot or removeable battery is a big negative compared to the S3.  It also doesn't help that they still do not have a model to compete with the S3 at all on Verizon.

And, yet, the top selling smartphone in the world has neither a removable battery nor an SD slot. Maybe you need to re-think your assessment.


It's funny - one of the carriers is advertising locally that they'll replace your smartphone battery 4 times per year when it starts to lose power. Wouldn't it make more sense to buy a phone that doesn't break down 4 times a year?
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post #21 of 24
Quote:
Originally Posted by jragosta View Post


And, yet, the top selling smartphone in the world has neither a removable battery nor an SD slot. Maybe you need to re-think your assessment.
It's funny - one of the carriers is advertising locally that they'll replace your smartphone battery 4 times per year when it starts to lose power. Wouldn't it make more sense to buy a phone that doesn't break down 4 times a year?


That means you can stop worrying about charge cycles and battery life. you can use and abuse your phone's battery as necessary against having to worry about the battery failing and being super careful to only charge at 1% to 100% to make sure you don't waste a charge cycle. Something easily repairable or replaceable doesn't mean it breaks down easily either.

 

That said, I agree that SD is no longer a requirement. The Cloud is here to stay

post #22 of 24
Quote:
Originally Posted by jragosta View Post

And, yet, the top selling smartphone in the world has neither a removable battery nor an SD slot. Maybe you need to re-think your assessment.
It's funny - one of the carriers is advertising locally that they'll replace your smartphone battery 4 times per year when it starts to lose power. Wouldn't it make more sense to buy a phone that doesn't break down 4 times a year?

The iPhone is the best selling phone despite not having an sd slot and removable battery. Why wouldn't you want these things all else being equal unless you are some mindless automaton who thinks everything apple does is perfect.

In any case, your point is irrelevnt as I was comparing two android phones and their respective sales.
post #23 of 24

MicroSD card is a requirement for Android because a larger % of Android users bought them because Apple didn't have them.

 

If I was in the market for the most powerful Android device, it better come with microSD slot and removeable battery standard.

 

Makes rooting the phone easier and battery life is still a major problem with Android.

post #24 of 24
Originally Posted by Vision33r View Post
MicroSD card is a requirement for Android because a larger % of Android users bought them because Apple didn't have them.

 

The logical underpinning of this sentence bothers me… lol.gif

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
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