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Struggling HTC reports record low quarterly profit

post #1 of 24
Thread Starter 
The smartphone industry is increasingly becoming a two-horse race between Apple and Samsung, as rival handset maker HTC Corp. on Monday reported its lowest quarterly profit since the company began reporting in 2004.

HTC saw a net profit of T$85 million, or $2.85 million U.S., in the three month span from January to March, according to Reuters. In comparison, HTC made T$10.9 billion in the same period a year ago.

HTC
A delayed launch for the HTC One is contributed to the company's struggles.


The company's lowest-ever quarterly profit came after it was forced to delay the launch of its flagship HTC One handset due to a shortage of camera components. The HTC One was only available in three markets at the end of the March quarter, when the Taiwanese company had originally planned to launch it in a total of 80 countries.

HTC also announced last week that it has partnered with Facebook to release the HTC first, a device billed as the first phone to optimize the Facebook "Home" experience for handsets running Google's Android platform. While Facebook Home will be available on other Android devices, the HTC First will be the only one available with Home preinstalled.

Last year, HTC accounted for 6 percent of the total worldwide smartphone market. Its sales were off 25.2 percent from 2011, while only Apple and Samsung grew their share year over year among the top five largest vendors.

On profit alone, Apple and Samsung captured 103 percent of the total industry profits in 2012, a share made possible because rivals such as Motorola, Sony and Nokia actually lost money in 2012. HTC accounted for 1 percent of the mobile industry's profits in 2012, but took a 0 percent share in the fourth quarter of last year.
post #2 of 24

HTC makes some of the sexiest android phones out there.  I hate seeing them on the losing side like this...

post #3 of 24
The unfortunate delay in getting the One to market really hurt them.
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post #4 of 24
Quote:
Originally Posted by brutus009 View Post

HTC makes some of the sexiest android phones out there.  I hate seeing them on the losing side like this...

 

I agree. Beats Samsung hands down IMO
post #5 of 24
I can see this turning around after the One hits the market. I'm really looking forward to buying one, and I'm sure many other people are too.
post #6 of 24
Htc should place more ads
post #7 of 24
I'd like to see HTC be able to mount a challenge to Samsung but the can't fight Samsung's marketing spend. So no way HTC One can compete with Galaxy brand.
post #8 of 24
Quote:
Originally Posted by brutus009 View Post

HTC makes some of the sexiest android phones out there.  I hate seeing them on the losing side like this...

100% agree.  A couple years ago, they made the worlds most fugly phones like the HTC EVO 4G.  That camera hump just ruins any phone.

 

The HTC One, however, beautiful.

post #9 of 24
This the result if putting market share ahead of profitability. Consumers may gain in the short term, but in the long term companies need to earn money.
post #10 of 24

I feel bad for HTC. They actually care about making a quality product, their designs and attention to detail are awesome, and their skin is infinitely better than touchwiz. They deserve to to be doing well, yet Samsung has pretty much monopolized the Android space with their sales simply because of shameless duplication, branding, insane marketing budget, and how every carrier is interested only in whoring out their phones. 


Edited by Slurpy - 4/8/13 at 7:58am
post #11 of 24

The only reason HTC is in the Cellphone business today is because of all the business Motorola through to them a long time ago when Motorola was on the raise. HTC use to make the phones that Motorola choose not to design and make. 

 

Yeah they may have a nice looking phone only because they are copying what everyone else is doing. You all rip on Samsung and M$ for copying and you praise HTC for a nice phone who is also copying.

 

I just find it funny they FB is partnering with a failing company. Either this will put the death nail in HTC or it will just be another step in the decline of FB.

post #12 of 24
Who cares. HTC overdid it. Too many phones during a small period of time.
Now they don't seem to know what to do. A bigger screen maybe.
post #13 of 24
Quote:
Originally Posted by maccherry View Post

Who cares. HTC overdid it. Too many phones during a small period of time.
Now they don't seem to know what to do. A bigger screen maybe.

I agree. A struggling company needs to streamline their product lineup not expand it. They're releasing the One on all carriers except for VZW which has the HTC Droid DNA. It would've been wiser to make the One for all carriers and advertise it to death.
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post #14 of 24
Quote:
Originally Posted by dasanman69 View Post


I agree. A struggling company needs to streamline their product lineup not expand it. They're releasing the One on all carriers except for VZW which has the HTC Droid DNA. It would've been wiser to make the One for all carriers and advertise it to death.

The problem is Verizon can afford to say no to HTC. They don't need the One in order to have a portfolio that will make them a lot of money. Everyone is asking for iPhones and Galaxies.

post #15 of 24
Two-horse race.

Agree 103%.
post #16 of 24
Originally Posted by AppleInsider View Post

HTC also announced last week that it has partnered with Facebook to release the HTC first...

 

Probably won't help HTC survive in the smartphone space.  Probably won't help Facebook in mobile either.

Facebook has been weak in mobile for too long, and HTC is looking for any edge against Apple and Samsung.

Two weak players trying something, anything, to prop each other up in the smartphone space.

 

Facebook?  There's an app for that.

 

Facebook Home?  Feels like a trial balloon for a "Facebook OS" or "Facebook Fone."

I can imagine gears turning in Zuckerberg's head to the effect of:

 

"First we do Facebook Home on a cool new HTC phone.  Next, if it takes off, we do a Facebook branded phone with Facebook mail, Facebook Home, and a bunch of Facebook-branded apps. And finally, we could spin off yet another fork of Android and call it Facebook OS!"

 

Good luck with step two there, Zuck.


Edited by SockRolid - 4/8/13 at 9:44am

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post #17 of 24
Quote:
Originally Posted by gwmac View Post

I have read stories that Verizon in particular likes exclusives. For example, don't you think motorola would love to sell their full range on AT&T, Sprint, T-Mobile, and all the smaller carriers? But Verizon at least appears to have their Droid line locked to Verizon which is really hurting Motorola.  

But besides Verizon, The HTC One is their global phone and will sell all over the world and in most of the U.S. Basically the same as the HTC DNA just a slightly smaller screen. 

I wouldn't even bother with AT&T, 8 out of 10 smartphones sold are iPhones that just leaves all other manufacturers to fight for the other 2. I would say that most fandroids are on VZW so why exclude what could be your biggest customer pool in the US. My brother was a big HTC fan but since there wasn't a top notch phone on VZW at the time he got a iPhone instead.

Motorola did it to themselves. They had a big hit with the first Droid and even led the charge with the big screen phones but their designs weren't inspiring which allowed Samsung to swoop in.
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post #18 of 24
Quote:
Originally Posted by anantksundaram View Post

Two-horse race.

Agree 103%.

I agree -103% which cancels out your 103%.

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post #19 of 24

Much needs to be done by HTC to come close to the likes of Apple and Samsung.

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

Maybe so but it seems to me that at least offering the Motorola phones to the other 200 million or so Americans not on Verizon would be a smart move. 

They do have phones on other carriers.
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post #21 of 24
Quote:
Originally Posted by CentralParkMac View Post

Much needs to be done by HTC to come close to the likes of Apple and Samsung.

They have but people are just not buying.
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post #22 of 24

It all comes down to Consumer Satisfaction. 

 

If HTC is mid-way or further down the list, the problem lies with HTC, not consumers, not advertising, not marketing, and so on. 

 

If you've got a great product, in this market its quality and what lies behind it will speak for itself. You can market the living hell out of a turd, but it's still a turd whose on-the-ground experience will still kill its chances. 

 

The only proviso to all this, is that as the top players become more entrenched and (in the case of Apple) *better* at fleshing out their ecosystem and differentiating their product, challengers and aspirants to that top position in the Consumer Satisfaction metrics will need to bring that much more to the table, that much earlier. In short, the likes of Microsoft and Blackberry, for instance, will need to change the game once more in order to get any appreciable traction. Windows Phone brought nothing substantial to the table in 2010, and still brings nothing substantial to the table today. It's merely an *adequate* also-ran. Hence, the platform isn't gaining any traction, and which is, in the opinion of a good friend of mine who is spearheading Wal-Mart's mobile initiative here in Canada, "pretty much dead."

 

Apple has already captured the Premium end of the market (and more than that, to boot), while Android has taken care of the Universal Licensing segment. There's not much room left for anyone else unless they turn the game on its head and can see the effort through over the long-term. As for OEMs, Apple is its own competition currently, while Android OEMs are left to battle it out for what seems to be a distant second from Samsung. 

post #23 of 24

Facebook: "Hey kids!  We're looking for a hardware partner for Facebook Home!"

 

Samsung: "Get lost.  The only brands we care about are 'Samsung' and 'Galaxy.'  Just ask Google."

 

HTC: "Thank the Gods.  Maybe Facebook will be our savior in mobile."

 

LG: "Dang.  HTC got the Facebook Home deal.  Let's start working on that mobile exit strategy."

 

Microsoft: "Zuck, listen man, we'll pay you $5 billion to port 'Facebook Home' into 'FacePhone Windows' on our Nokias.  $6 billlion?"

 

BlackBerry: "Face what?"


Edited by SockRolid - 4/8/13 at 5:11pm

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post #24 of 24
Quote:
Originally Posted by SockRolid View Post

Facebook: "Hey kids!  We're looking for a hardware partner for Facebook Home!"

 

Samsung: "Get lost.  The only brands we care about are 'Samsung' and 'Galaxy.'  Just ask Google."

 

HTC: "Thank the Gods.  Maybe Facebook will be our savior in mobile."

 

LG: "Dang.  HTC got the Facebook Home deal.  Let's start working on that mobile exit strategy."

 

Microsoft: "Zuck, listen man, we'll pay you $5 billion to port 'Facebook Home' into 'FacePhone Windows' on our Nokias.  $6 billlion?"

 

BlackBerry: "Face what?"


Home will be available for Samsung phones on April 12. Facebook also has a program to add other phones. Looks like you missed the memo.

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