HTC's Disappointing Fourth-Quarter Earnings are Lowest Since 2004
January 7, 2013 11:57 AM
comment(s) - last by
Analysts say the low numbers stem from HTC's lack of device offerings throughout the quarter
HTC's fourth-quarter earnings were
less than stellar
as it failed to offer enough new models to compete with the likes of the iPhone 5.
For Q4 2012, HTC reported an operating income of NT$600 million ($21 million USD), but analysts predicted NT$1.11 billion. Also, its net income was NT$1 billion, which is the lowest since 2004.
HTC's revenue also dropped 41 percent to NT$60 billion, which wasn't too far off from analyst estimates of NT$60.5 billion.
Analysts say HTC's disappointing numbers stem from the company's lack of device offerings throughout the quarter. The low number of devices it did offer were not very strong. However, HTC did introduce the Butterfly J smartphone, which should gain popularity in Q1 2013.
Last week, HTC CEO Peter Chou told investors that the worst is "probably" over now that a new year has started. In Q3 2012, HTC's
79 percent on a year-to-year basis, and global market share
from 2.7 percent in 2011 to 2.2 percent in 2012.
While 2012 wasn't looking too good for 2012, Chou insists that HTC will make worthwhile devices that will attract customers this year.
"One thing I'd learned from last year is to act fast and be responsive to market changes," said Chou. "We are being more flexible now. We are constantly fine-tuning our sales plans and position in various markets."
He added that "competitors were too strong and very resourceful, pouring in lots of money into marketing" and that HTC hasn't "done enough on the marketing front."
"Although we don't have as much money to counter [Samsung and Apple], the most important thing is to have unique products that appeal to consumers," said Chou.
HTC recently settled its patent issues with Apple, which
locked HTC into
long-term patent licensing agreements with both Apple and Microsoft. This should give HTC a boost as it is the most secure of the Android phonemakers as far as patent lawsuits go.
This article is over a month old, voting and posting comments is disabled
1/7/2013 1:11:20 PM
HTC has made some true crap in its infancy (HTC Touch Pro anybody?) but the One X is a great phone (Sense-bugs aside)
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
HTC CEO Tells Investors That the Worst is "Probably" Over
January 4, 2013, 2:25 PM
HTC's Woes Continue as it Posts Big Earnings Miss
October 8, 2012, 10:40 AM
HTC Posts Big Earnings Miss, Sees Signs of Slowing Growth
January 6, 2012, 4:45 PM
HTC Agrees to Pay Microsoft Royalties on All Android Handsets
April 28, 2010, 8:58 AM
New Reversible "Type-C" USB Plug Coming in Mid-2014
December 4, 2013, 10:38 AM
IDC Reports PC Shipments Will Decline by Double Digits in 2013
December 4, 2013, 10:18 AM
Canon EOS M2 Digital Camera Unveiled In Japan
December 3, 2013, 11:10 AM
Applebee's to Place Tablets at Each Table for Paying the Check, Ordering Food
December 3, 2013, 10:01 AM
Quick Note: Sony PS4 Sells 2.1 Million Units
December 3, 2013, 8:16 AM
UK iPhone Sales Show 5S Preference by Three-to-One Over 5C
December 2, 2013, 10:55 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Coalition of 20+ Tech Firms Backs MRAM as Potential DRAM, NAND Replacement
November 29, 2013, 11:59 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Fed Up With Cheating OEMs, Microsoft Trolls Chromebooks in New Ad
November 27, 2013, 4:09 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
Latest Blog Posts
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
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
U.S. Army Developing Cyber, Electronic War Arsenal
Oct 31, 2013, 4:49 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information