HTC revenues down 27%, blames competition

Posted:
in iPhone edited January 2014
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.
«1

Comments

  • Reply 1 of 25
    quadra 610quadra 610 Posts: 6,743member

    Quote:

     "strengthen execution to get ahead of competition" and "deliver a comprehensive range of products to offer customer choice."


     


    Gobbledygook.

  • Reply 2 of 25
    sflocalsflocal Posts: 4,547member

    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/

  • Reply 3 of 25
    blastdoorblastdoor Posts: 1,909member


    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. 

  • Reply 4 of 25
    tallest skiltallest skil Posts: 43,399member


    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.

  • Reply 5 of 25
    gwmacgwmac Posts: 1,796member

    Quote:

    Originally Posted by AppleInsider View Post



    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.

     


     


    The S3 really hasn't been out for very long. It was released overseas a few months back but only was released in the U.S. a short time ago. Samsung reported that they have sold 50 million of the S and SII series in fact. However you want to slice it, they went from around 20 million in this quarter last year to 52 million this year. Apple used to be able to say that although Android together was larger than Apple's share but Apple sold more than any single Android manufacturer and can no longer say that. They must be doing something right to jump from 20M in Q2 2011 in one quarter to 52M in Q2 2012.


     


    Having said that, I think the HTC One is a very nice phone if you like Android. The display is absolutely gorgeous. I am surprised that Samsung is destroying HTC in sales. It matches up well with the S3 and even bests it in some categories. 


     


    I imagine there is a lot of pent up demand for the new iPhone for two main reasons. 1) LTE and 2) larger screen. There is very little reason to believe it won't deliver on both so sales will skyrocket and possibly get Apple a lot closer to Samsung's numbers. Lots of 3, 3GS, and 4 owners that skipped the 4S in order to buy the 5. 

  • Reply 6 of 25
    jd_in_sbjd_in_sb Posts: 1,484member


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

  • Reply 7 of 25
    hill60hill60 Posts: 6,989member

    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.

  • Reply 8 of 25
    maestro64maestro64 Posts: 4,527member


    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.

  • Reply 9 of 25
    gwlaw99gwlaw99 Posts: 134member


    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.

  • Reply 10 of 25
    hill60hill60 Posts: 6,989member

    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

  • Reply 11 of 25
    richlrichl Posts: 2,213member

    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.

  • Reply 12 of 25
    richlrichl Posts: 2,213member

    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.

  • Reply 13 of 25
    hill60hill60 Posts: 6,989member

    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.

  • Reply 14 of 25
    zorinlynxzorinlynx Posts: 169member


    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?

     

  • Reply 15 of 25

    Quote:

    Originally Posted by gwmac View Post


     Apple used to be able to say that although Android together was larger than Apple's share but Apple sold more than any single Android manufacturer and can no longer say that. 


     



     


     


    image

  • Reply 16 of 25
    hill60hill60 Posts: 6,989member

    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.

  • Reply 17 of 25
    philboogiephilboogie Posts: 7,438member
    Hope To Copy
  • Reply 18 of 25
    sockrolidsockrolid Posts: 2,788member


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

  • Reply 19 of 25
    quadra 610quadra 610 Posts: 6,743member

    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. 

  • Reply 20 of 25
    hmmhmm Posts: 3,405member

    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.

Sign In or Register to comment.