HTC revenue up from last quarter, down year-over-year

December 3, 2013

HTC One golden

In its recent earnings report HTC reported revenue of $522 million (NT$5.47 billion), which is a gain from the previous quarter, but a significant decrease year-over-year.

HTC’s Q3 2013 revenue is a 3.2 percent increase from its Q2 revenue, but still a massive 27.1 percent decrease from the same quarter last year. Through the first 11 months of 2013 the Taiwanese manufacturer brought in revenue of $6.5 billion (NT$190.97 billion), which is also a decrease from 2012.

The numbers don’t look good for HTC, and the immediate future doesn’t look great, either. The company predicts it will only ship 5.2 million smartphones in the fourth quarter of its fiscal year. That’s a 16.2 percent decrease from the same quarter last year. HTC blames the decrease on the lack of any new devices aside from the HTC One Max.htc earnings 5 year

HTC does have a new smartphone on the horizon in the rumored M8, the alleged successor to the HTC One (which bore the code-name M7). The HTC M8 is rumored to have a 5-inch 1080p display with a similar camera to the HTC One and a faster Snapdragon 800 processor. That phone isn’t expected to launch until February 2014 at the earliest, however. Between now and then, HTC doesn’t seem to have any new devices that can help bring up its revenue, at least not any with a Western focus.

Despite the innumerable positive reviews the HTC One received, it appears that it simply wasn’t enough. Notwithstanding HTC’s (and many other manufacturers best efforts) Samsung’s marketshare has remained dominant. With its massive marketing budget for its Galaxy brand, and strong relationships with carriers, Samsung currently controls most of the Android market, which makes it very difficult for competitors like HTC.

Do you think HTC has a chance to survive against Samsung? Are you hopeful the M8 can help make HTC more profitable?

Comments

  • MadCowOnAStick

    this is like the downfall of nintendo

    • mustbepbs

      Yeah except people seem to forget that the 3DS is and has been the best selling console for months and months.

      Nintendo isn’t going anywhere.

      • jbrandonf

        Can 3DS sustain the entire company? Lets see how the WiiU does this generation..

        • mustbepbs

          Yes, yes it can. It has for the past few years.

          • jbrandonf

            I think they’ve instead gotten by on the billions they had stacked up when the Wii was being bought by every Tom, Rick and Harry out there.

          • mustbepbs

            I guess you haven’t seen the 3DS numbers then.

          • jbrandonf

            No, can you link to them? Also, what kind of margins are Nintendo pulling from that device?

          • mustbepbs

            Look them up yourself, you lazy ass.

          • jbrandonf

            You’re the one trying to prove Nintendo is alright, the onus of proof is on you. Its like you saying the moon is made of cheese and when I say no, you telling me to prove its not.

          • mustbepbs

            If you search for 3DS sales on Google, you’ll see that they’re at 40m in 3 years. It’s selling better than the DS did at the same time in their respective lifespans.

            Back when it first came out in 2011, it cost Nintendo a little over $100 to make a 3DS, which they were making a profit per unit sold. The price per unit only decreases as time goes on as hardware gets cheaper to make. So they’re making a profit per unit sold, and they’re selling lots per month.

            With the 3DS, XL and 2DS, Nintendo is consistently the top seller per month.

          • jbrandonf

            The price was also a lot higher back then. A quick search tells me that 3DSs are going for $180. Lets say that production costs fell to $80..they would have net themselves a total of $400m since the launch of the 3DS..not adjusting for production costs at launch.

            $400m over almost 3 years isn’t going to sustain an international gaming company with waning next gen console sales.

          • mustbepbs

            You forget that they have 3 “SKUs” for the 3DS: the original, the XL and the 2DS.

            Not only that, but even during the most turbulent time for the Wii U Nintendo barely lost anything at all. We’ll know Thursday how the holiday sales went.

          • jbrandonf

            Good points. Not getting too far off the topic, I think in the upcoming years they’re going to have a tough time because they’re at risk of losing the casual gamers to cell phones and tablets that they captured with the Wii.

            It’s become easier to connect your mobile devices to the televisions and handheld grips to accommodate phones are becoming widespread. Don’t forget that games are a couplebucksas opposed to $25-40 a pop on handheld consoles. Nintendo is going to have to make some tough choices in the next few years.

          • mustbepbs

            Not really. There’s clearly a handheld market for good, quality games, you know, the kind of games you can’t get on app stores. As “powerful” as mobile devices get, the 3DS keeps selling and selling. The problem with mobile development is that people are trained to buy cheap games, and it’s expensive to develop games on the magnitude of dedicated handhelds. Not only that, but not everyone has a controller peripheral, so they can’t very well design a game around that niche.

            If you compare the iOS library of games to the 3DS library of games, you can clearly see a very wide gap in quality. And there are many, many more people using the iOS App Store versus the 3DS. Mobile developers know what sells, and that’s games like Candy Crush: free to play microtransaction IAP games.

  • Name

    Produce less models. Sell them at until no unsold unit remains, even close to cost if necessary. Also easier to promote and would not dilute the brand.

    Oh, and there’s a whole world outside the US and Taiwan! And it’s fed up of HTC’s newsletters spamming its email inboxes about american-only deals and T-Mobile, ATT and Verizon promotions!

    • Shark Bait

      They seemed to be doing better when they were churning out lots of models. That allows for more innovation because they can test what works before putting it on their flagship.

      I think Samsungs model is strong. They have 2 flagships , galaxy s and note, and others they try new things with or fill lots of gaps with.

      Also samny market there phones sooooo much better and are perceived as a better brand because if it I think.

      • Name

        They dont need ‘testing waters’ anymore. Samsung proved what does, and even some of HTC’s models demonstrated the same.

        Samsung can afford to experiment in any way it wants and flood carriers with its devices just to keep out competing devices from gaining visibility, but HTC cant and every device it produces should hit the sweet spot for its class and sell. What’s complicated to understand in that? For competing devices priced similarly, the one offering the most will win your business (Samsung’s being the default picks thanks to ever-present SD slots).

        • Shark Bait

          I think they need ‘testing waters’ more now then ever. Western markets are slowly beginning to saturate with plain rectangle smartphones, so you need to explore new markets or try new things if they want to grow

  • dandroid13

    It’s a slow and painful death, but it’ll come.

  • Ivan

    The only chance is to expand their market, all over the world like samsung has, and create a technology capable of bringing innovation at more affordable prices.

  • MattHail

    Create something like the One, not something like the One Max.

  • ReinoldFZ .

    I lost interest in htc when they seemed to downgrade from innovation to a decadent luxury brand, and although the HTC design is gorgeous I prefer a cellphone with possibility to change batteries or add storage instead of others with dr. beats sound and metallic build that are cosmetic and not utilitarian features.
    (although I’d like the dual sim version they have for the uk :-P)

    • Mr Satan

      The expensive (800$) dualsim version with SD slots has *no 4G*.

  • Soto

    HTC has the best looking phones, the most polish and best android skin. They need to keep their ears low to the ground and listen to the community.
    If they focus on off-contract and prompt updates, then they might turn more heads in their direction.

    • Vince Klein

      I sort of agree. However, HTC bet the house on the One and when it hit the shelves as a premium priced hero device, supply was limited and some stuff just was not executed very well. There came fixes for quirks in sense and new colors were made available that really add to the visual appeal. Had those features/fixes/colors been there from the get-go, I am sure sales would have been better. Also going for a camera that is extremely geared towards low-light came with a bunch of tradeoffs. That was not acceptable to some.
      The One mini came way too late and was compromised in its own way.
      I’d like HTC to release a One mini 2014 along with the flagship refresh. It would certainly break an established pattern and be risky but I think it is worthwhile.

  • grimreaperbeckons

    Just shut up and die HTC. Sick of hearing BS about your next “premium” flop.

    • jbrandonf

      Sit down before you hurt yourself. Why would you wish for less competition?

  • Austin Michael

    I think if this the S5 has this solid metal uni body design like it’s rumored then that will kill off HTC because all the Metal Lovers will move over.

  • mustbepbs

    Shame. The DROID DNA has been my favorite phone by far, and I’ve owned a lot of them.