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So much for the "recovery"

HTC Corp.'s (TPE:2498) latest unaudited earnings release on Monday left more troubling questions than palatable answers, as the company posted a large miss.

According to Financial Timessurvey of 23 analysts, the average expectation was around $5.4B TWD (Taiwanese dollars; 1 TWD = 0.034 USD).  Instead HTC posted a miserable $4B TWD -- a serious warning sign that the company may have hit a major pothole along the road to recovery.

HTC's profit was approximately 50 percent lower than it was last year.  Q3 2011 was HTC's last strong quarter.  Fueled by sales of its popular Android handsets, the company cheered strong sales and sustained growth last year as it briefly topped U.S. sales charts, according to some analyst estimates.  

But in Q4 2011 the company posted a huge earnings miss, and the string of bad financials has continued ever since, driven by slumping sales.

The company's reported revenue was $70.2B TWD ($2.4B USD).

The company's short-term turnaround prospects hedge on a colorful pair of Windows Phone 8 handsets (the 8S and 8X) and a high end Android 4.1 "Jelly Bean" offering (the Tegra 3 quad-core, 4.7-inch display One X+, which also packs LTE support).  

One X Plus
The HTC One X+ [Image Source: Anandtech]

HTC in many ways has been among the most aggressive players in the industry in terms of pursuing tangible hardware-level differentiation in its handsets.  Recent models include special image processing hardware that allow them to take photos from a stream of video.  Many models also carry special amplifier chips from subsidiary Beats Audio, allowing them to produce better sound quality.

It remains to be seen whether the new devices and special hardware is sufficient to lure the fickle consumer electronics market.  Another quarter has come and gone, and HTC is left still trying to recapture the magic that allowed it to grow wildly from a company who made other companies' smartphones, to a first-party devicemaker and household brand name.

Source: HTC [via Engadget]

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HTC's biggest problem...
By thinlizzy on 10/8/2012 11:21:59 AM , Rating: 2
I've had HTC Hero and now I have HTC Desire HD.
I would buy HTC One X + but I am unsure due to weak battery. 2100mah on a 1.7 quadcore and 4.7 screen...For me that is the biggest turn off with HTC - weak battery. If they would put 2500mah in One X+ I'd order it tomorrow.

RE: HTC's biggest problem...
By bug77 on 10/8/2012 11:46:58 AM , Rating: 2
Reasons to criticize are plenty, regardless of the manufacturer. I hate waiting a year for an update, for example.
But HTC seems to have no strategy. Why would you buy HTC? Why would you recommend some to buy HTC? Because of Beats? Sense?

RE: HTC's biggest problem...
By ReloadAO on 10/9/2012 7:45:11 AM , Rating: 2
I have DHD too and I'm very disappointed in their decision to not upgrade it to ICS. I can never suggest HTC phone anymore.

On the other side it encourage me to root my DHD and install there new 4.1 Jelly bean.

Anyway fcuk HTC

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