HTC, the second biggest smartphone manufacturer from Asia, has recently announced a 70% year on year drop in profits for Q1 2012 and a 35% year on year decline in revenues. High Tech Computer’s earnings for the first quarter totaled NT$4.46 billion (US $150 million), down from NT $14.8 billion in the same quarter of 2011. Total revenues for the first quarter have reached NT $67.7 billion.
Fortunately for HTC fans and stockholders alike, the first quarter was always regarded as a transitional one, as it was obviously transpired in a statement made by HTC’s Chief Financial Officer Winston Yung on February 6, when he admitted HTC’s products in Q4 2011 weren’t exactly what their fans expected them to be. The disappointing financial reports are obviously connected to HTC’s lack of response to a couple of devices launched by its main competitors in Q4 2011.
While Apple stole everybody’s show with the release of the iPhone 4S back in October, Samsung was able to keep their sales up with their Galaxy Nexus and Galaxy Note smartphones. HTC was unable to keep up. “We simply dropped the ball on products in the fourth quarter,” Yung said on Feb. 6 “The form factor could be better and the product design could be better. So we’ve learned lessons from the fourth quarter products.”
On the upside, HTC expects much better financial results in Q2 2012, as all their Q1 efforts went into manufacturing the One series of smartphones, recently launched in Europe and several additional markets, and expected to reach the US later this quarter. Sure enough, the HTC’s flagship superphone — the quad-core HTC One X — is probably the best Android smartphone currently out there, but the success of the entire HTC One series also depends on Samsung’s and Apple’s response to the threat. According to Gartner analyst CK Lu: “[…] it’s really about how HTC can compete with the new iPhone and the new Samsung Galaxy, so we will have to wait and see”.
Will HTC be able to turn over their financial fates? Let us know what you think in the comment section below!
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HTC’s products in Q4 2012 weren’t exactly what their fans expected them to be.
it was 2011 not 2012
Yeah, that’s right! Thanks for the heads up!
In trouble? a bit exagerated, their profit is positive and quite nice for a company that only makes smartphones, not to mention that for to Straight Quaters HTC didn’t release any major product it is surprising that they have that much profit. Since 2008 HTC been breaking it own profit record, Quarter after Quarter straight till Q3 2011, a 2011 that was a mess in terms of smartphones coming from HTC, a part from the Sensation internationnaly, the rest were only random products.
I guess HTC Learned the hard way when they saw their sells droping in Q4 of 2011 and the change of strategy and preparation for a new product took them a full Quarter (No phone were released in Q1 2012), but with the One line up we can rest assured, I guess the record spree is coming back
As someone who has never really been keen on the various HTC phones, I had a look a the new One X in the store yesterday and was surprised at just how nice it is. The hardware/design is gorgeous, and their silly sense overlay is no longer a gaudy poke in the eye but rather a fairly clean accessible interface. I’m almost due to replace my Galaxys S1 and will be considering the One X as a replacement.