HTC Profit Plunges, Sales of "One" Slow as Sector Stagnates
July 5, 2013 6:52 PM
comment(s) - last by
HTC may now be moving a million units of its flagship smartphone or less, slips to tenth place
top smartphone seller in the U.S.
, Taiwan's HTC Corp. (
) has today slipped to tenth place, according to Gartner, Inc. (
). The company this week announced its earnings for June, revealing that it will miss analyst earning expectations despite modest sales of its
. The struggles are the latest for the company, which has seen a
dramatic financial fall from grace
since late 2012.
I. The Fall to Tenth Place
The embarassing plunge could be blamed on a variety of causes:
The general competiveness of the smarpthone market
HTC's failure to gain ground in emerging markets like China
U.S. slippage (
due to import bans
and being outmarketed by top U.S. sellers Apple, Inc. (
) and Samsung Electronics Comp., Ltd. (
to Apple and Microsoft Corp. (
HTC gave no hard numbers on how many One smartphones it has sold, only stating that sales are picking up. Previously, an unnamed executive had told
The Wall Street Journal
that by late May
5m One smartphones had been sold
. That was roughly 2 months after the global launch, and 1 month after the U.S. launch (which was
delayed to late April
But Citigroup Inc. (
) Global Markets Inc analyst Kevin Chang estimates there may only have been ~1.2m in May sales and ~600,000 in April sales. He
The Taipei Times
, "HTC shipments to peak in May, stay at a similar level in June and start to decline in July."
HTC One sales appear to have seriously slid in June, after a May surge.
And reality may be even worse than that when it comes to June sales. HTC pocketed $29B TWD ($962M USD) in May, but just $22.1B TWD ($733M USD) in June. June's sales had erased roughly 70 percent of May's gains over April, at about twice
February's record low
($11B TWD ($365M USD)).
In total HTC took in $70.7B TWD ($2.35B USD) for the quarter versus a
of $72.8T TWD ($2.42B USD). Net revenue (profit) was $1.25B TWD ($41.5M USD), well short of the $2.17B TWD ($72.0M USD)
-surveyed analysts predicted.
HTC has closed several offices as part of a downsizing plan. [Image Source: Reuters]
The losses come despite
aggressive cost cutting
by HTC and
facility closures late last year
II. No Relief in Sight?
The future is murky for HTC.
aggressive changes on the marketing
Robert Downey Jr. (of
fame) to a $12M USD endorsement deal, making him the face of HTC's high-tech smartphones.
Robert Downey Jr. will reportedly give HTC marketing a boost. [Image Source: Marvel Studios]
Those high-end products include such well reviewed premium products as the
overseas "Butterfly" model
and the international "One" flagship device, both of which feature attractive margins.
But overall HTC's lineup looks anemic and its recovery seems to be slowing. There's a serious risk that HTC's long time
CEO Peter Chou may step down
last year's mid-range devices
is a troubling sign for HTC, and may be enough to scare off customers to HTC network-carried handsets.
Those things aside, perhaps the biggest looming threat is the lack of upcoming products in the pipeline, at least according to currently leaked information. HTC is planning on launching
an HTC One Mini
in August that looks like a substantial step up from the
Galaxy S 4 Mini
. But the Galaxy S 4 Mini is out
-- and Samsung's rumored to upgrade it around the time of the HTC One Mini launch.
The HTC Mini is arrive late to the party, so to speak. [Image Source: forte.delfi.ee]
Samsung is releasing specialist smartphones (like the
), while HTC's lineup remains small. And while Apple's big update -- the
Apple iPhone 5S
a faster Galaxy S IV
are rumored to be on the horizon for fall launches, there's a relative lack of compelling upcoming product from HTC in the rumor mill thus far. That's not to mention Huawei Technologies Comp.'s (
upcoming Ascend P6
and Nokia Oyj.'s (
Sure, the HTC One impressed, but did HTC tip its hand too early and fail to follow up? That's what increasingly looks to be the case, as the next generation of smartphones to be released over the next few months aim to erase the reviews lead HTC's flagship device briefly enjoyed.
HTC can take comfort in the struggles
. But at the end of the day the parts of the roadmap that are leaked or public known seem to suggest HTC to be at a competitive disadvantage looking at the rest of 2013.
This article is over a month old, voting and posting comments is disabled
RE: It's a shame
7/7/2013 8:53:56 AM
I would choose the S4 (or more likely the Note 3) for similar reasons, having a large beautiful screen but limited onboard memory is a real weakness for my use (my two year old Note has over twice the capacity of a One due to being able to use micro SD expansion) and with power hungry devices having a fixed battery is also an issue. I don't like the HTC design either, it seems to get a lot of praise for the way it feels but in terms of day to day durability it seems poor compared to Samsung's build (at least it was on the Sensation and S2).
I used to be a big fan of HTC when they produced highly functional devices but since they decided to dump all that for 'pretty' phones with no expansion, fixed battery and poor durability I wouldn't even consider an HTC handset at the moment.
"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
Slow Samsung Galaxy S IV Sales, Advertising Expenses Trigger Earnings Miss
July 5, 2013, 2:41 PM
More Images of Super-Camera Endowed Nokia Lumia 1020 Leak
July 4, 2013, 10:24 AM
HTC Kills Android Updates for One S, Tells Customers to Stay "Confident"
July 4, 2013, 6:53 PM
Huawei Snags Former Nokia China President
July 2, 2013, 5:44 PM
Apple Stock Dips to $400 as iPhone Inventory Climbs
June 25, 2013, 9:00 AM
AT&T Will Also Receive the HTC One (M8) for Windows
August 19, 2014, 9:27 PM
Sharp's "Edge-to-Edge" AQUOS Crystal Smartphone Coming to Sprint for $239 Off-Contract
August 19, 2014, 7:31 PM
After 34 Years With Microsoft, Steve Ballmer Parts Way to Focus on LA Clippers
August 19, 2014, 4:17 PM
HTC One (M8) for Windows Officially Announced for Verizon Wireless
August 19, 2014, 12:15 PM
Quick Note: ASUS Readies Smartwatch for IFA 2014, Shows Teaser Image
August 19, 2014, 9:30 AM
LG Already Gearing Up for G Watch Sequel Next Month
August 19, 2014, 7:54 AM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
With USB Type-C Spec Finalized, Reversible Cables Will Soon Be Upon Us
August 13, 2014, 8:46 AM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
Update: Samsung Gets Official With 4.7”, Aluminum-frame Galaxy Alpha Smartphone
August 14, 2014, 8:56 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 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