Struggling HTC reports record low quarterly profit
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.
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.
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.
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.
Comments
HTC makes some of the sexiest android phones out there. I hate seeing them on the losing side like this...
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 IMOQuote:
Originally Posted by brutus009
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.
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.
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.
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.
Quote:
Originally Posted by dasanman69
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.
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.
Quote:
Originally Posted by dasanman69
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.
Agree 103%.
Originally Posted by AppleInsider
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.
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.
Quote:
Originally Posted by dasanman69
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.
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.
I agree -103% which cancels out your 103%.
Much needs to be done by HTC to come close to the likes of Apple and Samsung.