HTC Sees Poor Sales in Europe, But Stronger Than Expected Chinese Sales
June 7, 2012 7:40 PM
Company cuts outlook on U.S. and European weakness, but is bullish on Chinese gains
cash-strapped Android phonemaker
HTC Corp. (
inexplicable month-long seizure
of its flagship smartphones may have hurt the company's ability to get stock to customers. But HTC appears to be continuing to struggle, to some extent, on appeal factor as well.
The company reported slow sales on Thursday, which forced it to revise its sales estimates, which had previously
predicted a larger recovery
While its HTC EVO 4G LTE and
HTC One X
were impressive, many buyers are opting to wait instead for the
Samsung Galaxy S III
from Samsung Electronics Comp., Ltd. (
). While HTC's handsets remain isolated on single carriers in the U.S., Samsung's flagship phone will
launch on all four of America's top carriers
Thus the problem likely boils down to a mix of availability and marketing.
New chief financial officer, Chia-Lin Chang, warns that despite the myriad of complications in the U.S. market, U.S. sales were respectively better than Europe where the situation was very bad. Comments Mr. Chia-Lin, "A bigger softness is from Europe than the U.S. Given all the things happening in the second quarter here, we certainly hope we can get the right guidance and have a more smooth transition going forward."
HTC is hoping for a big turnaround in Q2 2012. [Image Source: Reuters]
The only good news is that HTC saw stronger than expected growth in China, a market
long dominated by Samsung and Nokia
). Comments Mr. Chia-Lin, "But sales in China are better than we thought; we expect China will contribute a representative percentage to the revenue this quarter."
Mr. Chia-Lin was appointed CFO in mid-April after a disastrous first quarter
cost his predecessor the job
. The executive holds a Ph.D. in Electrical Engineering from
and an M.B.A. from the
University of Pennsylvania
. He served at Motorola -- which today competes with HTC as Google Inc. (
) subsidiary Motorola Mobility, during its more successful years (some time ago). More recently he worked as an investment banker at Goldman Sachs Group Inc. (
) as an investment banker and partner.
Due to a $2.6B TWD ($87.3M USD) write-off to clearance unsold inventory, HTC is expecting 2 percent lower operating margins for the quarter, revising its forecast to 9 percent. Revenue was bumped down from $91B TWD ($3.06B USD) from $105B TWD ($3.53B USD).
That's still a third better than the $67.8B TWD ($2.28B USD) that HTC pulled in during the first quarter. While HTC's second quarters have typically outpaced Q1, it's a positive sign that fire at the phonemaker hasn't yet entirely burned out.
Between 2010 and 2011 HTC grew four-fold, and briefly seized the top sales spot in the U.S. However, Samsung and Apple have since bumped HTC downwards, and the company is in fifth place in global smartphone sales.
that overall the smartphone market growth looks to be weakening for the latter half of 2012, which may be part of HTC's problems, given its otherwise solid lineup. Analyst Bonnie Chang, an analyst from Yuanta Securities, said the cut outlook was not a major concern, except in the sense that there's a general fear across the entire market about reduced revenue growth.
Comments Ms. Chang, "If the reason is more because of the macro concern, then it's not in the control of the company, no matter how good its products are. It can even affect the business of Apple."
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
Samsung Galaxy S III To Hit all Four Major U.S. Carriers Starting at $199 on June 21
June 4, 2012, 9:48 AM
Game Over? Apple's Bid to Kill HTC Nears Fruition as ITC Blocks Imports
May 16, 2012, 11:35 AM
Samsung's Galaxy S III Brings 4.8" HD Super AMOLED Display, Quad-Core Exynos
May 3, 2012, 2:55 PM
Quick Note: HTC Profit Officially Down 70 Percent, CEO Blames Apple
April 25, 2012, 10:26 AM
HTC Predicts Massive Turnaround, ARM Celebrates Another Epic Quarter
April 24, 2012, 11:56 AM
Latest News, this is how the Moto X (2017) might look
December 3, 2016, 9:02 AM
Fake Apple Chargers Fail Safety Tests
December 2, 2016, 5:00 AM
FlowMotion veils its new smartphone stabilizer, FlowMotion One
December 1, 2016, 3:00 AM
Samsung Galaxy C7 Pro smartphone surfaces online.
November 30, 2016, 1:00 AM
Best Phones of 2016 - Priced under $650.00
November 27, 2016, 5:00 AM
Echo Dot is a Best Seller - Sold Out Until December 1, 2016.
November 26, 2016, 6:00 AM
Most Popular Articles
Sales Battle - Apple iPad Mini vs Samsung Galaxy Tab
November 29, 2016, 12:36 AM
PlayStation 4 Pro – 4K Console for 4K TVs
November 28, 2016, 1:00 AM
Phillips 55’ 4K Smart TV – Is This Really a Deal? We Think So.
November 25, 2016, 9:44 AM
Google Wi-Fi – A Scalable Wi-Fi Solution for any size Home or Apartment
November 30, 2016, 1:00 AM
PIQ ROBOTTM reveals its new artificial intelligence software
November 29, 2016, 12:59 AM
Latest Blog Posts
Dec 4, 2016, 5:00 AM
Apple Car is Not Dead
Dec 4, 2016, 1:00 AM
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
Foldable Cardboard ”EcoHelmet” wins James Dyson Award’s Top Prize
Nov 18, 2016, 2:39 AM
Scientists Discover Roundest Object Ever Spotted in Universe
Nov 17, 2016, 1:00 AM
Smallest Device Lets You Print Almost from Anywhere
Nov 16, 2016, 9:32 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information