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
RE: Reap what you saw
7/9/2012 3:21:21 PM
But then what would anyone buy an HTC phone for? HTC has no vertical integration, they dont make the main components nor have tons of money. Apple can secure contracts to get the latest displays from LG, Samsung makes nang, cpus, displays so they can keep the best for themself. HTC does not do any of this. So the only thing they have is quality of phone design and software. Lets be honest today a phone is a rectange with a display thats it, nothing more so there is nothing but the display, speeds as in CPU and software to set them apart.
Get it HTC is stuck making sense, they have no way out unless they can somehow buy into a leading display maker.
RE: Reap what you saw
7/10/2012 7:55:43 AM
Phone manufacturers had no problem competing on hardware before the smartphone came to be. Design, ruggedness, battery life, signal strength are all very important features that many reviews these days don't even bother to mention. No, we have to know how good is the FB integration. Ok, design is always mentioned, but battery life is almost always hidden under a 'YMMV' statement.
I'm also fine with competing on software if so they choose. But in this case, 'I released ICS after only 7 months, not 8-9 like the competition' is not acceptable.
"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
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
Amazon Seeks FAA Permission to Test 50 MPH Flying Drones
July 11, 2014, 12:32 PM
Samsung Fails to Launch its Tizen-based Smartphone in Moscow, Unsure of New Launch Date
July 11, 2014, 9:00 AM
China's Top State-run Broadcaster Considers iOS Tracking Feature is a National Security Threat
July 11, 2014, 8:25 AM
Verizon Wireless Offers Up $100* LG G3, Will Be Available July 17
July 10, 2014, 4:21 PM
Satya Nadella Says Microsoft is a "Productivity and Platform Company" for the Mobile/Cloud World
July 10, 2014, 12:29 PM
Motorola Touts Its Moto 360 Smartwatch in Another Teaser Video
July 10, 2014, 9:26 AM
Most Popular Articles
Apple's iPhone, iPad Update iOS 7.1.2 is Badly Broken for Some
July 8, 2014, 2:00 PM
Despite Legal Threats Google Begins Posting Warnings of ISP Throttling
July 7, 2014, 5:52 PM
Buzz Aldrin Says First Astronauts to Set Foot on Mars Should Never Return Home
July 9, 2014, 9:46 AM
Your Uncharged Smartphone, Tablet May Prevent You from Boarding U.S.-bound Flights
July 6, 2014, 11:11 PM
Samsung Sales, Profit Drops in Q2, Apple Sees Troubling Signs Too
July 8, 2014, 8:18 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
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
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information