HTC sees another bad quarter, will M7 change its fortunes?
HTC has posted its financial results for Q4 2012. Before revealing the extent of HTC’s fall from glory, it is worth pointing out that the company has made a profit, in fact it has made a profit which a lot of companies would dearly love to see, we are talking profits in the millions of dollars. Not revenue, but profit… millions of dollars of profit.
In fact HTC made $34.48 million (T$1 billion) profit for the last three months of 2012. That is a great number, but here is the thing, in the same period of 2011 the company made ten times that amount at $380 million (T$11.02 billion). Likewise, HTC made a net profit of $133.17 million (T$3.9 billion) for the July-September period of 2012. So even compared to the previous three months profits are way down.
HTC’s fall hasn’t been pretty. Q4 2012 is the fifth straight quarter where net profit fell. HTC, which has been in the smartphone market since 2006, was the biggest Android handset maker in the USA just two years ago. Now it has seen its global market share shrink to just 4%, down from 10.3% a year earlier. To put this into perspective companies like Samsung and Apple have global market shares around the 30% and 15% mark, respectively.
Peter Chou, HTC’s CEO, went on the record a few days ago and said “The worst for HTC has probably passed. 2013 will not be too bad…. The most important thing is to have unique products that appeal to consumers.” And this is where the M7 comes in.
The Taiwanese smartphone maker is hoping to start the year strong with the release of a new flagship handset. It is thought that HTC’s new Android smartphone, the M7, is to be unveiled at CES 2013 and its specs look very interesting. The device is thought to have a 4.7-inch, full HD (1980 x 1080 resolution) display. This means it will have a 468ppi pixel density, a number that is 40% higher than the Retina display of the iPhone 5. At its heart the device is rumored to have a 1.7 Ghz Snapdragon S4 Pro CPU and 2GB of RAM. There is also rumors of a 13MP camera with a f/2.0 lens.
What are your thoughts on HTC, its future and the M7? Let me know by leaving a comment below.