Print 19 comment(s) - last by andrewaggb.. on Oct 9 at 12:32 PM

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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RE: I'm shocked
By othercents on 10/8/2012 11:36:26 AM , Rating: 3
I think advertising plays a big part since Samsung is selling plenty of Galaxy S IIIs. Then you have the "recommend" devices by the staff at the AT&T stores. These people are also part of the decision making process and probably recommend Samsung over HTC.

I have seen both devices and the Samsung as features that is making someone who purchase the HTC upset that he didn't wait for the Samsung Galaxy S III.

RE: I'm shocked
By name99 on 10/8/2012 3:56:58 PM , Rating: 2
Oh my.
You mean that Android buyers are swayed by marketing in EXACTLY the same way as the Apple "sheeple"? And they can no longer sneer down their noses at people who choose iPhones as mindless zombies driven by advertising?

Say it isn't so!

RE: I'm shocked
By Belard on 10/8/2012 11:27:29 PM , Rating: 2
I bought the Motorola Atrix HD based on research and playing with the phones. The HTC One X has a better camera, but that is about it. Same $100 pice. Even if the galaxy S3 was $100, I would have still gone for the Atrix HD.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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