HTC Continues to Struggle, Amid Weak European Sales, Apple Ban
July 6, 2012 6:25 PM
comment(s) - last by
Sales, profits, fall short of analyst expectations and early forecasts
HTC Corp. (
), Taiwan's largest smartphone maker,
its unaudited results for the second calendar quarter, which ran from April through June. The results were very poor.
Analysts had expected a recovery to a profit of $8.99B TWD [
]. Instead, HTC under-delivered, posting $7.4B TWD ($247.7M USD) in earnings. That's down remarkably from the $17.52B TWD that the company pulled in last year.
Revenue was $91B TWD, less than the $94B TWD predicted by analysts.
A number of factors combined to yield the disappointing quarter for HTC. One negative was a
temporary sales ban in the U.S.
that stalled the release of certain flagship handsets. That sales ban came despite HTC vocally agreeing to comply with an Apple, Inc. (
) feature ban. HTC
removed the infringing feature
, but was treated with a lengthy delay anyhow.
The company was boosted when the
U.S. International Trade Commission
refused to grant
a hasty "emergency" ban
third trade complaint
against it. However, that small victory came as little consolation in the wake of the costly market delay.
But the biggest single factor dragging HTC down was arguably
the weakening European economy
. Amid the U.S. sales ban, HTC was hit by a double whammy when customers in cash-strapped European nations opted to skip purchases.
struggled to compete
with the flagship handsets of Apple and rival South Korean Android manufacturer Samsung Electronics Comp., Ltd. (
). Samsung also struggled with European sales issues, but its much stronger profit margins and global sales led it to an impressive profit outcome.
A weak European market cost HTC, amid stalled U.S. sales. [Image Source: Europe.bg]
Still, all is not lost for HTC, which has grown in multiple since it exploded onto the market in 2010. The former contractor remains a premiere manufacturer, but weakening revenue and profitability have forced it to commit to trimming its workforce. The company said likely 1,000 employees would be cut globally.
HTC's flagship U.S. smartphones -- the
HTC One X
and EVO 4G LTE -- remain quite competitive with Apple and Samsung's product in terms of features, even if they are underappreciated.
Shares of HTC stock were battered over 5 percent in trading on Taipei, Taiwan's stock exchange.
This article is over a month old, voting and posting comments is disabled
7/8/2012 1:15:28 PM
No it isn't in their best interest at all.
If Intel could sell chips at $500 where they now have to sell at $100 with competition, they would take the $500 deal in a heartbeat. Who the hell would want to make 500 times as many products to make the same amount of money???
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
Apple's Samsung Tablet Ban Upheld, HTC Phone Ban is Rejected
July 3, 2012, 6:45 PM
Apple Looks to Bully HTC With Third ITC Complaint, HTC Abandons Offense
June 14, 2012, 2:30 PM
HTC Sees Poor Sales in Europe, But Stronger Than Expected Chinese Sales
June 7, 2012, 7:40 PM
HTC Implements Workaround to Apple's Patent for Evo 4G LTE, One X
May 17, 2012, 4:35 PM
Game Over? Apple's Bid to Kill HTC Nears Fruition as ITC Blocks Imports
May 16, 2012, 11:35 AM
Surface 2 LTE Tipped for AT&T, Power Cover Available for Pre-order
March 12, 2014, 9:15 AM
HTC One Leaks: LED Smart Cover, Carrier Models, Google Play Ed.
March 11, 2014, 5:30 PM
New HTC One Camera Details Revealed via Leaked Ad
March 11, 2014, 9:20 AM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Apple Releases iOS 7.1, The First Major Update to Its "Rethought" Mobile OS
March 10, 2014, 1:52 PM
BlackBerry CEO Jokes that iPhone Users are "Wall Huggers"
March 10, 2014, 12:20 PM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings
March 5, 2014, 9:05 AM
Windows 8.1 Update 1 Leaked Early
March 7, 2014, 9:30 AM
Apple Won't Let UK Sons Unlock Their Deceased Mother's iPad
March 6, 2014, 12:44 PM
Lt. Gen. Davis Says Next Gen USAF Bomber Will "Of Course" Surpass $550M/Unit
March 6, 2014, 9:45 AM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information