HTC Sees Poor Sales in Europe, But Stronger Than Expected Chinese Sales
June 7, 2012 7:40 PM
comment(s) - last by
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."
This article is over a month old, voting and posting comments is disabled
HTC's European issues ...
6/8/2012 2:15:30 AM
HTC really needs to fix the European issues relating to its business decline. I think there are two main problems:
1) Support issues.
2) Distribution issues.
Both are challenges with Samsung as well but HTC can really make a strong diferrence here if they really put in the effort to have a quality support system that actually works.
Distribution needs improvement. Sourcing a few more retail outlets in strategic cities and having some more online dealers. HTC has to understand the publicity of SGS 3 is far greater than the One X. But it has the One V which is also a great mid-range phone with features of the high-end at a better price level. This is an advantage HTC can use. Its built quality is way better and possibly the overall attractiveness does appeal to a lot of buyers.
RE: HTC's European issues ...
6/8/2012 7:13:46 AM
Agreed. Theyre struggling to recapture the market they had with the original Desire and Nexus. Both great phones in their day, but the follow up Sensation was quite - a bloated, buggy, Sense UI overlay that turned people away.
I loved Sense on the Desire but its a pig on the Sensation. Plus I STILL dont have the ICS update yet. Wishing I got a Samsung!
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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
Air Force Expects to Save Over $50 Million in 10 Years by Using iPads
May 17, 2013, 12:26 PM
Former Intel CEO Regrets Passing Up on iPhone Gravy Train
May 17, 2013, 11:46 AM
Intel-Based Lenovo Yoga 11 Lands, is $240 USD More Expensive Than ARM Version
May 17, 2013, 11:02 AM
Galaxy S IV Looks to Hit 10 Million Sales in Just Four Weeks
May 17, 2013, 10:12 AM
Nintendo Wii U: No EA Games for You!
May 17, 2013, 8:35 AM
Quick Note: CyanogenMod Hits 5 Million Users
May 16, 2013, 1:42 PM
Most Popular Articles
Report: Microsoft Eyes Return to "Dying" Windows 7 Path After Windows 8 Flop
May 13, 2013, 9:50 AM
Bill Gates Gets Teary-Eyed While Discussing Steve Jobs, Shows Off Life-Saving Tech on 60 Minutes
May 13, 2013, 12:30 PM
Windows 8.1 Will Be Free; Microsoft Holds Onto Struggling ARM Variant
May 14, 2013, 2:57 PM
Google Announces "Pure" Galaxy Nexus S4 for $649, Android Updates
May 15, 2013, 1:42 PM
U.S. Federal Traffic Board Wants to Make Drunk Driving Threshold Far Harsher
May 15, 2013, 11:32 AM
Latest Blog Posts
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
Elon Musk Willing to Spend More Money on Widening of 405 Freeway
Apr 26, 2013, 7:28 PM
New $100 Bill Due in October
Apr 24, 2013, 11:52 PM
Volkswagen Shows off iBeetle in Shanghai
Apr 22, 2013, 9:29 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information