Last Monday many financial analysts were already anticipating that HTC would miss its profit forecasts for the first quarter of this year, due mainly to delays caused by component shortages with the new HTC One. Today HTC has announced its quarterly earnings report for the first part of the 2013, and unfortunately the results have fallen short of even the most pessimistic predictions.
The company announced a worse than expected quarterly revenue of just NT$42.8 billion (New Taiwan dollars), which works out at approximately $1.4 billion USD. This is considerably less than the NT$50 billion-NT$60 billion target given by HTC back in February, and even falls short of the downgraded forecast of NT$45 billion issued by JP Morgan Chase at the beginning of the month.
Over the past three months HTC has only managed to turn a profit of NT$85 million, which equates to roughly $2.8 million. A pretty paltry margin based on the company’s overhead costs. For the sake of comparison, in the first quarter of 2012 HTC managed a much healthier $470 million profit from a total revenue of $2.2 billion.
HTC is clearly under-performing and has been for a quite a while due to poor sales and a dwindling share of the smartphone market. The company’s stock is currently trading 70 percent lower than the highs set two years ago. As already mentioned, the cause for the company’s more recent performance worries is due to component shortages with parts for the new HTC One, resulting in the One being released in just three countries by the end of March instead of the 80 countries which were hoped for.
The next quarter’s performance report is no-doubt going to be key for HTC. By then the HTC One will be fully available in most major markets, so there will be more excuses for poor sales figures. Then there’s the newly announced HTC First, complete with Facebook Home launcher, which is a bit more of a risk but could pay dividends if smartphone users are as obsessed with Facebook as Mark Zuckerberg thinks they are.
I personally hope that HTC can turn things around, after all the company has given us some of the best Android handsets over the years and the HTC One is a top quality piece of technology. But the smartphone market is fiercely competitive and HTC will certainly be worried about the pending release of the Samsung Galaxy S4, which will be in direct competition with its own flagship handset.
There’s no doubt that this is shaping up to be a tough year for HTC.
Like this post? Share it!
the ultrapixels camera is to blame. its disappointing they couldn’t forecast the shortage of components
And the camera isn’t even that amazing. It was a risky bet and they failed (because of the delays and stuff)
It is …unless if you want to stretch your picture and print them as poster, or crop zoom them
I’ve seen comparisons and One seems to make overly bright photos in darkness. Compared to Lumia 920 it lost in a photography test in dark. And I crop zoom so not for me!
Well that wasn’t the conclusion the reviewer came out with, not to mention that the One snaps picture in 0.33s, where as the Lumia needs 3s of overexposing to deliver the same results, The One had the same profile as an option and it blew away anything when it comes to that, The lumia whens with sharpness in normal conditions and in videos it has a better image stabilization, but The One camera from the results of the different categories is the Best Android camera, on Pare with the Lumias 920 (The One camera wins in several categories in low light conditions not to mention the software side/settings and how things looks in your screen before snapping pictures
Yea I’d never change to WP for mamy reasons and one of them is the bad camera options
I need to check if you can get third party camera Apps on WP8 something you can’t do on iOS for sure, I wish Nokia kept MeeGoo or made Android phones aswell, more competition push for more innovations, and Nokia thanks to their collaboration with carlzeis and the know how they acquired in years of developement manage to deliver some amazing cameras in their devices, the N8 which came out several years ago it’s still a beast when it comes to that departement
Please check it out and let me know, I currently don’t have any windows phones near me (in Finland the popularity of them has grown because of Nokia so there often is one to play with) :)
And yes, N8 is still great, maybe even above the average of today!
Apparently you can, but I don’t know how much freedom and tweaks these software offers
oka, I bet that not much (like the default one)
According to Anandtech which has just posted their review after reviewing and digging every aspect of the phones judged the One camera as being the best on any Android phone, of course if your only metric is sharpness the One camera would lose to almost any camera with higher megapixel count when you do crop in and when the condition (light and so on are available)
I Invite to check Anandtech review of the One they things properly.
I don’t see the One helping things all that much. It’s just to much cash then people are willing to give for a HTC brand.
I think because they keep delaying the release of HTC One which was supposed to be a month ago
“I personally hope that HTC can turn things around” And I personally hope that they go bankrupt. I don’t understand why you “tech specialists” love HTCrap so much.