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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By TheJian on 10/8/2012 4:55:11 PM , Rating: 2
If they hadn't been held up at the border for 2 months maybe they would have sold a crapload of phones since what was held up was going to be a hit at the time. Apple managed to get customs to hold up HTC's phones despite the fact that they had no infringing code in them. Witness samsung selling 20 million phones in 100days. So in 60 days you could sell how many hot HTC phones? By the time customs let them go they were already caught and not so special anymore. In effect, they ruined HTC's launch party. I hope that plucky little chinese company that has a patent on iphone5 sues the crap out of them and is totally unreasonable. Where did they go anyway? Were the circulated pictures fake, or they just waiting for mass quantities to be sold so they can sue for whatever they make on them?

Did anyone ever see info posted on if it was REALLY patented and more importantly was it done in the USA also or just china? Was it all a late april fools joke? :)

Regardless Apple needs to die. :)

By inperfectdarkness on 10/9/2012 2:41:43 AM , Rating: 2
Agreed. This is the very first thing that popped into my mind. HTC is a "little guy" in the industry, and dealing with Apple took a lot of wind out of their sails. That's probably where the "Advertising Budget" went.

Some of the comments on this topic seem to blame HTC for not being competitive...but HTC is not RIM. You may stupidly laugh when RIM and HTC die off, but when the phone market dwindles down to 3 or even 2 players...people are going to feel it; both in their wallets and with the freedom they want from their smartphone.

DIAF Apple.

"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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