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HTC Profits Fall 79% in Climage of Stiff Competition

By - Source: Wall Street Journal | B 18 comments

With rivals Apple and Samsung increasing their presence in the ever-competitive smartphone market, HTC has announced a 79 percent decrease in profits since last year.

The Taiwanese company reported its lowest quarterly net profit figures since 2006. The firm made 3.9 billion New Taiwan dollars ($133 million) in the third quarter, which is a steep decrease from the NT $18.64 billion ($633 million) it made in 2011.

Revenue, meanwhile, also experienced a decrease to 48 percent, equaling NT $70.2 billion from NT $135.82 billion last year.

HTC was once the largest smartphone maker by shipments via Google's Android platform back in 2010. However, due to the emergence of Samsung through its flagship Galaxy smartphone line-up and the always popular Apple iPhone, the company's profit has since dropped continuously.

As for the Galaxy S3, the smartphone has sold over 20 million units thus far, with Samsung expected to record over $7 billion in profit in the third quarter. The iPhone 5 itself hasn't been doing too bad, either: the latest iOS device sold over 5 million units over its launch weekend.

 

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Top Comments
  • 11 Hide
    whiteodian , October 9, 2012 4:19 PM
    "HTC Profits Fall 79% in Climage of Stiff Competition" Climage, lol. :-B

    They produce some decent phones. Hopefully, they can turn it around.
Other Comments
  • 5 Hide
    eternalkp , October 9, 2012 4:13 PM
    step it up.
    Make a phone like Oppo find 5 and compete with samsung
  • -4 Hide
    mayankleoboy1 , October 9, 2012 4:13 PM
    Their best bet : buy a few patents and sue apple. They should get some net profit from this.
  • Display all 18 comments.
  • 11 Hide
    whiteodian , October 9, 2012 4:19 PM
    "HTC Profits Fall 79% in Climage of Stiff Competition" Climage, lol. :-B

    They produce some decent phones. Hopefully, they can turn it around.
  • 7 Hide
    cookoy , October 9, 2012 4:19 PM
    climage? Shoot, i was hoping i'd learn a new word today.
  • 2 Hide
    waxdart , October 9, 2012 4:54 PM
    A girl I knew once had "Climage".
  • 9 Hide
    thecolorblue , October 9, 2012 4:57 PM
    that spelling mistake should have been caught 5 seconds after it was posted...

    ...
    ...
    ...seriously
  • 8 Hide
    maxh2 , October 9, 2012 5:42 PM
    Because they keep doing stupid crap like releasing their flagship with non-removable battery and no micro-sd. Dumbasses...
  • -1 Hide
    maximus81 , October 9, 2012 5:51 PM
    Make a phone as thin as the Galaxy S3 and has a physical keyboard and i would pay anything for it.
  • 2 Hide
    marcel17 , October 9, 2012 5:58 PM
    It's not the stiff competition . There is no HTC phone that I would buy right now . The only HTC that could interest me ( EVO 4G ) is not available in my country ( Spain ) .
    Is it too much to ask in these days for a S4 Snapdragon with a decent LCD ( No efing AMOLED ) and a SD slot ? As far as now I need to see if Sony is willing to release the T or the V in Spain .
    I really don't care for thin phones , make it fat , old Xperia mini fat , but stick in good speaker ( s ) and a 2500 or dare I say 3000 mAh battery . Of course y would pay 50 - 70 $ more for the porky battery .
    I have nothing against HTC , my daily driver is a HTC Desire ( Bravo ) on ICS . It works fine but it really gets looooong in the tooth ...
  • 0 Hide
    flyflinger , October 9, 2012 6:02 PM
    I predict an OEM tie-up deal with HP in the near future... both companies are hurting bad and need each other.
  • 0 Hide
    teh_chem , October 9, 2012 7:44 PM
    No doubt the $40million they invested in OnLive and subsequently flat-out lost had something to do with it (though I'm sure there's a write-off process for that...).
  • 0 Hide
    brett1042002 , October 9, 2012 7:46 PM
    If this continues, I wonder how it will affect HTC's ability to push Android updates?
  • 2 Hide
    PTNLemay , October 9, 2012 8:22 PM
    5 words, HTC:

    Using Beats by Dr Dre. THERE's your mistake, well, one of your many mistakes.
  • 1 Hide
    jrharbort , October 9, 2012 8:46 PM
    Another major issue: Branding. Going from "HTC One X" to "HTC One X+" hardly gives the average consumer enough to tell the new product apart from the old one.
  • 1 Hide
    rohitbaran , October 9, 2012 8:53 PM
    Climage is a word? Hmm.
  • -1 Hide
    marcolorenzo , October 9, 2012 10:23 PM
    jrharbortAnother major issue: Branding. Going from "HTC One X" to "HTC One X+" hardly gives the average consumer enough to tell the new product apart from the old one.


    Just like going from iPhone 4 to iPhone 4S? I think you give the average consumer too little credit.

    In regards to the non-removable battery and absence of an SD card, those things don't bother me too much. And in terms of affecting sales, I doubt this is the reason why the Galaxy SIII is so popular. Most people that buy Samsung products these days are average Joes who are looking for an alternative from Apple. Most of them won't take advantage of the removable battery or use up the 16GB or 32GB of space that came with the phone. Of course, there are also a lot of more technical users out there for the Galaxy phones but they don't make up the majority. I think HTC just needs a stronger marketing push. When the One X launched, apart from seeing a few posters on the windows of phone shops, it's presence was hardly felt. But when the Galaxy SIII came out, everyone knew about it. I even showed a friend my One X and he asked me if it was a Galaxy. That just shows how good Samsung's marketing is. And now that HTC launched Sense 4.1 with Android 4.0.4, the international One X is actually out performing the SIII in several benchmarks but you hardly hear anyone mentioning that. There was a little buzz about that before it launched, but no major website has done any comprehensive comparisons since then. HTC has to make people care again, not just with great products but also by letting people know about them.
  • 0 Hide
    velocityg4 , October 10, 2012 4:13 AM
    That's the problem with only being a hardware manufacturer. All that matters is how your hardware specs and price stack up against the competition.

    This is why Apple does so well. They make the software and package it with hardware. Releasing them from having to compete solely on hardware specs. Instead people become loyal to the whole package.

    Sure Samsung is king right now but their position is precarious. All it will take is for LG, HTC, &c to have better hardware for the price and their sales will plummet.
  • 0 Hide
    dark_knight33 , October 10, 2012 6:54 AM
    Releasing something like the thunderbolt with a single core processor and last years specs, and charging and asinine price of $750 for what amounts to an EVO with an LTE modem is their problem, and I own a thunderbolt.

    HTC is focusing on gimmicks to sell phones instead of technology. They aren't putting nearly enough into R&D, and pull BS moves like missing an ICS release date when JB is already just around the corner. Their successor to the Thunderbolt, the Rezound was nearly outdated when it hit the shelves (like the Thunderbolt), and it looks uglier to boot.

    They are wasting resources on windows phones that won't sell, and have moved to this god awful bulging rectangle shape to avoid apple's ridiculous patent on the rectangle with rounded edges (wtf?).

    Putting a tablet chipset into a phone (One X+) is the first real risk they've taken to advance their line up, and what do they do? Stick it on a sub-par 3.5G network (AT&T). Marketing also takes a huge facepalm there. Apple is the only company that can seem to get people to buy new phones by adding a single character after the name (3GS, 4S, etc).

    -79% profit is the reward the company gets for having lazy executives.