HTC loses faith in its own lineup, predicts gloomy Q4 ahead

by: Bams SadewoOctober 26, 2012

If you think that HTC has hit rock bottom with their disastrous Q3 financial results, the phone maker has more bad news to share. In a recent statement, the company said that its Q4 revenue is set to drop 14% compared to the previous quarter, signaling that it has yet to succeed in weathering the Samsung storm.

The projected $2.05 billion revenue for the busy holiday season is well below analysts’ forecasts, which expect HTC’s offerings in the smartphone market can pull in $2.5 billion in revenue in the final quarter of the year.

HTC also said that it expects its gross margin in Q4 to fall to 23% from 25% in the previous quarter, and operating margin to dip to 1% from 7%.

While it’s hard to imagine for a company of its magnitude to end up becoming a shadow of its former self in just a few short years, HTC is now living up to its “quietly brilliant” slogan, albeit with the last word omitted. HTC has admitted as much that it’s facing difficulties in rebuilding itself amidst the increasingly competitive landscape.

Speaking of new products, it’s obvious that the One X+ alone won’t be enough to turn things around for the struggling company. We have a good feeling about the HTC J Butterfly aka the Droid DNA (DLX), though. Here’s hoping that the 5-inch smartphone will be the big, breakout hit that HTC has been dying to score – which the One series evidently has failed to do.

  • Daniel Cavanagh

    HTC Sense. That is all.

    • It ruins the performance on all their phones and now they have proper competition. If they could just have a way to disable that annoying sense ui

      • Daniel Cavanagh

        Pure ICS/JB would run perfectly on phones like the One X. I would get one over my Galaxy S2.

      • Nurbol

        I agree, previous Senses were too heavy and sometimes slow, but Sense 4.0 is running very smooth, fast and stable even on my old Desire Z. As always, it’s intuitive and comfortable (I find Sense’s menu and dialer better than ipones and clean androids, touchwizs). For me Sense is an advantage of HTC. Weaknesses are too high prices, battery life and software upgrade support.

  • sean

    All HTC phones should ALSO be sold in Nexus variants.

  • ub

    No SD card, Non-changeable Battery, no HTC…

    • cycad007

      Unfortunately, I’m with you on this one. I really want to support them…but they *ARE NOT* listening to their customers!!

      • On a Clear Day

        Exactly, ub and cycad007. HTC is suffering the fate of any person or manufacturer who insists on thinking what they like is what we should like and want and buy. Fortunately, in a free market economy, we can vote with our dollars and send them to those whom we perceive truly ARE listenting and trying to serve our best interests.

        Whoever has been “leading” HTC ought to be fired for lack of vision.
        I really like the look and feel of their phones – too bad they are non-starters.

  • biggeno313

    How about they stop with all the frustrating exclusives…Seems to be working quite well for Samsung!!!

  • DAngelo8

    No advertising. I see a Galaxy or iPhone commercial EVERY evening, but never anything for HTC. My wife’s One X is fantastic, but the word has to get out. Moreover, they needed to get their phones out like like Samsung did, same models across all carriers. I’d love a One S, but it’s not available on my carrier.

  • Don’t care for no microSD (minimum 32GB please) or removable battery (in fact I prefer the batteries are not removable). Love their design over the S3. and I think others are right when they say HTC has no marketing department.

  • corona10

    Firstly, availabilty. An example. The Htc One x. You give AT&T an exclusive for your flagship device back in April. Then 6 mos later slightly upgrade it with new cpu, more storage and a bigger battery. Then you proceed to give the SAME carrier ANOTHER exclusivity deal or was that part of the first one? In a 6 month span. And its still only available on AT&T. The majority of this device’s life its been locked up with AT&T exclusives. You havent made it available to any other US carrier except Sprint which got another version of the device. You need to start doing your own advertizing.The One couldve been the device that brought you guys back to the top but you you blew it by limiting its availability and not promoting it yourselves.Then you go back on your promise to release fewer devices and concentrate on quality.People are losing patience with your practices. Then announcing major devices and limiting to one country? Or announcing one then not giving any specifics. Continue doing this at your peril.You’re quickly losing followers and wont turn things around if you keep doing these sorts of things. It makes it appear you dont’ have any direction or listen to what your consumers really want.