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HTC's Profit Down 91.5% in Q1 2013; Samsung's Up By 53%

By - Source: DigiTimes | B 25 comments

Q1 2013's financial figures brings more joy for Samsung and even more woe for HTC.

Not too long ago, HTC and Samsung could reasonably be considered to be Android's two heavyweights. Q1 2013's financial figures have made it obvious just how large the gap has become since then. While HTC's profits fell to just $2.85 million, a 91.5 percent drop from Q1 2012, Samsung estimates its operating profit to be $7.7 billion, a 53 percent increase from Q1 2012.

Though both companies will be releasing their respective flagship smartphones in April 2013, HTC has delayed the release of the One due to component shortages that have mostly been attributed to its "revolutionary new camera," a feature that Fudzilla remarked as being "apparently so revolutionary that it can't be built."

Fudzilla further commented that it seemed too late for HTC to rethink its marketing strategy and that the company "makes some brilliant phones, but it just can’t get its message across. Even if it gets its act together and boost marketing, it will never be able to match Samsung’s runaway marketing budget."

Samsung, on the other hand, is expected to see operating profits reach a new record high in Q2 2013. Because of its status as the world's largest supplier of memory chips and flat-panel TVs, Samsung doesn't foresee any major component shortages for the Galaxy S IV.

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  • 5 Hide
    TheBigTroll , April 9, 2013 6:11 PM
    the new upcoming products espeically the HTC One should bring things around. id say its a much better option than the galaxy s4
  • 0 Hide
    edogawa , April 9, 2013 6:11 PM
    91.5%...gasp that's bad, my phone is from HTC.
  • 5 Hide
    sacre , April 9, 2013 6:13 PM
    1 product ruined it for me with HTC.

    Had an "HTC Touch" back in the day, it was slow, crappy, couldn't play games, tiny screen, the touchscreen wore out, it didn't work in the cold. It was just a piece of shit. On top of that it had a chip that was capable of higher resolutions and better framerates, but through software they limited the chip so they could release another version with the chip unlocked. There was a petition to unlock the chip in the Touch but it never happened.

    Ever since then I never went to HTC. Their phones may be good today, but this just goes to show that if you F up one product, you'll lose customers.
  • Display all 25 comments.
  • 0 Hide
    dalethepcman , April 9, 2013 6:29 PM
    Nice to paint part of the picture... HTC's earnings per share in Q1 2013 are expected to be around $.50 on $54bn in sales and they are expected to be 9 times higher in q2 2013, with $4.41 per share earnings on $71.5 bn. The spin you are putting on this makes no sense, but then again % change in profit doesn't mean much if you don't have capital spending and sales figures included.

    These are TW$ figures not US$ by the way.
  • 3 Hide
    ikyung , April 9, 2013 6:36 PM
    $2.85 million vs... $7.7 BILLION?

    I agree that HTC makes incredibly beautiful phones with the right price tag, but they don't know how to run a business. I guarantee once the HTC One hits the market, HTC won't be able to keep up with supply/demand. The aluminium body and shortage of components will definitely hinder them from printing out large volumes. Majority of consumers won't wait months in line from all the back orders and will go buy an Apple, S4, or the new Sony phone instead which will result in HTC losing thousands if not millions of potential customers.
  • 0 Hide
    dormantreign , April 9, 2013 6:42 PM
    I'm not one for numbers...but that seems really bad.
  • 4 Hide
    STravis , April 9, 2013 6:48 PM
    sacre1 product ruined it for me with HTC.Had an "HTC Touch" back in the day, it was slow, crappy, couldn't play games, tiny screen, the touchscreen wore out, it didn't work in the cold. It was just a piece of shit. On top of that it had a chip that was capable of higher resolutions and better framerates, but through software they limited the chip so they could release another version with the chip unlocked. There was a petition to unlock the chip in the Touch but it never happened.Ever since then I never went to HTC. Their phones may be good today, but this just goes to show that if you F up one product, you'll lose customers.


    Same boat - but I had the HTC hero. Biggest POS phone I ever owned. They lost me as a customer for ever.
  • 0 Hide
    vmem , April 9, 2013 6:52 PM
    This is starting to feel like how Intel and AMD saw eye to eye at one point, and well... look at AMD now lol (not to say AMD don't have a few nice products or isn't a capable company, really, just like HTC)
  • -2 Hide
    sonofliberty08 , April 9, 2013 6:53 PM
    to play the business game like that u will need full support from your government for resource, the koreans giant corporation are all supported by their government, and most of them play tricks to success in the games
  • 0 Hide
    CKKwan , April 9, 2013 6:55 PM
    This is how Samsung run their campaign to kill HTC

    http://www.youtube.com/watch?feature=player_embedded&v=3dR5Khcf9xg
  • 1 Hide
    clifftam , April 9, 2013 7:00 PM
    Let see in the next two quarters if HTC will make a come back. Their new phone, HTC One, has great review. It might just take some time for them to catch up and if they have a rebound in market share.
  • 1 Hide
    feeblepenguin , April 9, 2013 7:16 PM
    Remember that these are PROFITS. Money in the bank. Nearly 3 million profit is miniscule to a huge company, but remember that motorola continues to lose money for google. (Even a company with a penny of profit will continue to run because they're still all getting paid.)
  • 2 Hide
    Antimatter79 , April 9, 2013 7:23 PM
    I have to say that in my house alone, we upgraded two phones, moving from HTC to Samsung, and added two Samsung tablets as well, so I can certainly see how the market is moving from a personal perspective. We still have to HTC phones in the home, and I already know for sure that one of my sons will get the S4 when it launches, and the younger one will likely get the S3 at a deeply discounted rate. Sorry, HTC. The frequent lockups, automatic reboots, and worst of all, failing volume buttons on the HTC Inspires we all owned turned us off.
  • 1 Hide
    sundragon , April 9, 2013 7:36 PM
    ikyung$2.85 million vs... $7.7 BILLION?I agree that HTC makes incredibly beautiful phones with the right price tag, but they don't know how to run a business. I guarantee once the HTC One hits the market, HTC won't be able to keep up with supply/demand. The aluminium body and shortage of components will definitely hinder them from printing out large volumes. Majority of consumers won't wait months in line from all the back orders and will go buy an Apple, S4, or the new Sony phone instead which will result in HTC losing thousands if not millions of potential customers.


    It's really sad because the HTC One is a great alternative to the Samsung Galaxy. The quality of the phone is class leading and giving Samsung some competition is good for customers.
  • 3 Hide
    whysobluepandabear , April 9, 2013 7:57 PM
    HTC got stupid and tried to cut a lot of corners - well that didn't quite work out so well, so here they are, tarnished with a bad name and horrendous profits.
  • 3 Hide
    Cons29 , April 9, 2013 8:26 PM
    i own an s3 (not a fanboy, don't like the short battery life), and i love my 27 inch samsung monitor, but im not impressed with the s4, i like the ONE better based on what i've seen so far.

    hope htc picks up, time for some healthy competition
  • 1 Hide
    math1337 , April 9, 2013 8:50 PM
    I had an HOX, with no replaceable battery, no sdcard, no unlockable bootloader, and no root. I switched to a samsung note within a week and it's so much better here.
  • 0 Hide
    wh3resmycar , April 9, 2013 9:05 PM
    HTC sucks and expensive and that's it. not a lot of people care about "beats audio". their midrange phones are pathetic and their high end ones are so so. sony and samsung and even LG were offering better alternatives thantheir POS oneX, oneS, oneV. hell even zte and huawei were offering better phones.
  • 1 Hide
    jalek , April 9, 2013 9:39 PM
    Don't know how to get it's message across? That's politico-babble, not marketing.

    If their products were the best available, they would be selling. As it is, the Galaxy has a lot of word-of-mouth evangelists. Nobody wants to see another Evo that lags behind on Android version support, but talk of a phone that isn't available isn't "message", it's just hype.
  • 0 Hide
    Bloob , April 9, 2013 9:42 PM
    ikyung$2.85 million vs... $7.7 BILLION?I agree that HTC makes incredibly beautiful phones with the right price tag, but they don't know how to run a business. I guarantee once the HTC One hits the market, HTC won't be able to keep up with supply/demand. The aluminium body and shortage of components will definitely hinder them from printing out large volumes. Majority of consumers won't wait months in line from all the back orders and will go buy an Apple, S4, or the new Sony phone instead which will result in HTC losing thousands if not millions of potential customers.

    Samsung is much more than a phone maker, although no doubt their phone division makes good money too.
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