HTC sees another bad quarter, will M7 change its fortunes?

January 7, 2013
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htc-logoHTC 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.

Comments

  • http://twitter.com/danmcsw danmcsw

    “unique products that appeal to consumers”
    They already have some unique products. No other company, making 27 flagship devices per year, will abandon them and leave them without support as quickly as a HTC. I’d say that makes them pretty unique.

    But seriously, what is unique and appealing about, for example, this upcoming M7?

    1080p screen? They’re popping up by nearly every manufacturer now!
    S4 quadcore? Same story as the screen!
    2 GB RAM? Ditto!
    Exceptionally large battery capacity? Nope!
    Any appeal for those who want removable battery and sdcard? Nope!
    New Sense UI? Oh that turd is unique alright, provided you don’t really want to appeal to consumers! After all, which of us doesn’t wan’t 1/6 of our horizontal resolution taken up by 3 dots while playing a game, assuming of course that Sense doesn’t make the game crash in the first place.

    • http://www.garysims.co.uk garysims

      So I am hazarding a guess here… not sure… but it sounds like you aren’t impressed with HTC!!!!

      :-)

      • http://twitter.com/danmcsw danmcsw

        You can bet your bottom dollar on that Gary :-)

        They really need to listen to the people who already own HTC devices. The biggest problem, I think, is that once a consumer has purchased, HTC no longer care or listen to these people. It doesn’t occur to them that these are the people most likely to buy again from HTC next year provide their experience with HTC is reasonably good.

        • cycad007

          I second that sentiment. I own the HTC One S device…I actually would be happy to purchase another one if they added a SD Slot and removable battery. But the question is…is HTC listening?!

          • http://www.facebook.com/georgealexiouvalentey George Av

            nope. they are not. that’s just one of the reasons no one likes HTC

        • http://www.facebook.com/georgealexiouvalentey George Av

          My one X is collecting dust in my draw. and it still has ICS WTF and the phone is so freaking weak compared my my s3

        • Chitty

          I had a sensation and then a one X and loved them, but lack of updates and the fact they don’t listen to their current user base also mean I will probably not buy HTC again. I’m also not liking how the new sense is looking from the leaked images.

          I also agree that they should put their design money into a few outstanding phones with everything their customers are asking for rather than a hundred phones which gets confusing and seems pointless.

          • http://www.facebook.com/georgealexiouvalentey George Av

            they should slap on stock android and use the money that they freed up from sense development FOR MARKETING

    • http://www.facebook.com/georgealexiouvalentey George Av

      My guess is, Samsung will go all out with the Galaxy S4. we can predict a Exynos 5 quad (will smash Tegra 4) or the newer one Samsung should announce soon at CES a octacore CPU.

      what i think we will see on the s3 is:
      1920X1080p 5inch screen
      Exynos 5 quad or the octa core CPU (my money is on the Octa core one)
      3GB of ram, like why not? look at all the competition now?
      GPU this is hard one, of they are going with a OCTACORE CPU it makes sense to slap on a Mali-T678. But if it’s Exynos 5 quad then it will be Mali-T658. either way, Samsung will again have a winner on there hands.
      So if Samsung make a phone with those specs, there is only one thing left to do. Build a uni body phone. Or atleast mill the phone out of aluminium and somehow inplement a EX sd card and removable battery. <that would destroy HTC

      • http://twitter.com/danmcsw danmcsw

        The aluminium (or whatever suitable metal they choose) body would be a very good thing for Samsung to implement if possible in the Galaxy S4 and other future high end models.
        There is really only one criticism that often gets levelled at Samsung, and that is the perceived view that the phone is less strong because of the plastic body. I say “perceived view” so that you understand this is not my personal view. I think phones like GS3 feel adequately strong for my needs. I treat my gadgets like babies anyway. :-)
        However, there is a sort of myth about this, held by many, people who may be more interested in buying a Samsung if this particular doubt could be laid to rest.

        It is indeed an avenue that Samsung may want to explore in their pursuit of even more customers.

  • http://www.facebook.com/georgealexiouvalentey George Av

    nope, HTC just can’t compete with Samsung or Apple.
    1: they have a microscopic marketing budget.
    2: NONE of there phones can match a Samsung or a Iphone.
    3: my one X is still on 4.0.4 so ya. MY s3 is on 4.1.2 and soon on 4.2.1
    4: how many fucking phones do HTC release? even if they are cutting production of some models, you will still see around 500 new HTC phones this year.

    • cycad007

      You bring up valid points. Although, I’d argue that the reason for HTC’s recent lack of success has been more them being tone-deaf to their customers (no SD slot & removable battery) than anything else.

      They need solid leadership (sorry but Peter Chou should step down), start listening to their customers, update their existing products to the latest/greatest Android, establish a high-end brand (what’s next for the One series?!), use stock Android.

      • http://www.facebook.com/georgealexiouvalentey George Av

        HTC should just STOP and re-work their plan. Currently they suck ass. some dickhead is running the company and HTC is just a total mess!

    • melody

      As other have point out somewhere, HTC will fail as long as they:

      1. Cannibalize feature as excuse for design (ex. removing sdcard slot as result of unibody design).

      2. Didn’t listen to user.

      And I dont see M7 to be any different. So HTC will see another bad quarter soon.

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