Even though the Samsung Galaxy S3 is still weeks away from being put up for sale, its imminent unveiling is already causing serious headaches to Sammy’s competitors. HTC shares dropped over 6% on Tuesday on the Taiwan Stock Exchange, and this sudden fall is interpreted by financial analysts as being caused by two factors.
First of all, the future Samsung superphone finally has an unveiling date next to its name, and pretty much everybody in the mobile business is looking at the future Galaxy S3 as the “Android of all Androids”.
However, as flattering that might sound to Samsung executives, HTC’s shares drop was also caused by an internal “event”, the replacing of the company’s CFO. Winston Yung, HTC’s former chief financial officer, has been replaced after less than a year and a half since his appointment, with Chia-Lin Chang taking his place. Chang, a former partner with Goldman Sachs in Taiwan and an ex-Motorola engineer, takes on a key position at HTC, at a time when the electronic giant seems to have entered a slippery slope of financial decline.
After 18 extraordinarily successful months, when HTC’s sales shares tripled and sales quadrupled, the tech firm started (last April, if I’m not mistaken) to lose momentum in the ultra competitive mobile market and saw its sales and revenues drop significantly.
The latest earnings report recorded a 70% year on year drop in profits for Q1 2012 and a 35% year on year decline in revenues for HTC, which seems to have been enough to convince the firm’s brass that they need to drive the company towards some sort of change.
The first step towards change has been the rethinking of the whole marketing strategy and the narrowing of the number of devices launched by HTC on a yearly basis. The One X has been chosen as the “hero” device to turn the tables for HTC and things look pretty promising on that front, with the smartphone being hailed by reviewers, as well as regular technology enthusiasts all over the world.
The CFO change should have been the second step towards progress, but the company’s shares drop seems to be painting a whole different picture. On the other hand, a key change in a company’s leadership usually translates into poor stock results on the short term, with the possibility of a recovery on the long haul, if the new boss proves to be the right person for the job.
As for the Galaxy S3 unveiling , it’s still unclear if it has, in fact, caused (at least partially) the shares drop, but several financial experts think it did. The May 3 event should be pretty worrying for the Taiwanese giant, but, then again, we should wait and see how the One X will sell and then draw conclusions on the company’s current and future financial welfare.
So, what do you guys think? Will the Galaxy S3′s launch squash any hope for HTC to get back in the race in the Android smartphone world or will the One X actually turn the tables for the Taiwanese? Let us know in the comments section below!
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Realistically no one knows what hardware the S3 is packing. If it really has the 12mp camera and the quad core processor then yes, HTC needs to worry and update the One series of phones to compete. If the rumor yesterday about the S3 not being that big of an upgrade, then HTC will be fine.
I think that the release of the SIII will actually trigger a sales boost of the One X in the short run. Why do I think that?
The anticipations about the Galaxy S3 hardware are so high that simply cannot be delivered, and because of that some folks who put their One X purchase on hold waiting for S3 will now manage to buy the HTC flagship. :)
Htc one x has a very big design problem as it does not has removable battery and does not support sd card. It just copy the bad thing from iphone. I hope galaxy S3 would not repeat this mistake.
No real reason for a removable battery for most consumers; android geeks are the only ones who carry two batteries and stream enough data to stress the phone. Most people couldn’t care less about the battery or an SD card slot so long as the phone works and looks good
The One X was designed to appeal to the maximum number of users, not the 1% that read android blogs
@ wastry are you serious ? The one not having a removable battery, means that you can’t replace it, when it wears out. & you don’t have 2 steam alot of data for the battery to run out before the end of the day. With many games taking more than 1 gig of data, & using the Cam for high def video. 16gigs isn’t enough storage for alot of people.
That’s why the HTC One X has 32gb and not 16.
It works like this. Those that don’t care about having a removable battery and Micro SD will buy it with or without, as you say it don’t matter so by having removable parts it will appeal to people like me and Keith and MANY others too. To me that means that this phone is already not attractive to a maximum userbase, and that by removing these features you are reducing potential buyers. So your argument imo is flawed.
Cloud is becoming prominent which is ok for some, but the mobile networks are no where near upto coping, and many of us want reliable access to our documents without depending on our data connection and frankly the 26GB of usable storage on the One X is not enough. I use 30GB between my Micro SD and onboard storage for MP3 and video on my S2 and that isnt as much as id like to have. Cutting down another 10GB and being on the maximum limit is no good.
If all that suits you then fine, you go for it and be happy. I wont go for it and that is a potential sale HTC has lost automatically just because of 2 simple little things. Shame really.
so why would it have an sd slot if it did not support external storage? -_-
oh yeah that’s right. i was thinking about the htc evo 4g lte. lol oops sucks for people on at&t
Having a removable battery and a card slot would be a big plus for the HTC One X. I have been a Samsung Galaxy S2 user the moment it was on sale and now I am using the Galaxy Note. When the One X was released I was tempted to buy one. When I found it had a non removable battery, no card slot, and requires a micro sim, I had second thoughts and decided to keep my Note and wait for the S3.
I dunno why all the android blogs are spinning this as somehow due to the S3, but they all seem to have a lot of fanboy hate for HTC, for whatever reason. Last CEO screwed up with that $300 mill boondoggle in Beats; I’d say the share drop is due to mismanagement, and not the S3 in any way.
That said, if the S3 drops in a 4412, One X will rule the roost for power, especially the US variant with the S4. If Sammy decides to push out the Exynos 5250, it’ll be game on, with the S3 pulling ahead
None-sense (yup it is on purpose) The stock droped because HTC fired it CFO as you mentioned which was fired over the 300million$ spent on Beats, nothing to do with SGSIII, if anything will happen it will be day of the release when the real product is unveilled. And you are going to tell me this isn’t a fanboy artical? not a single techblog, journal, economic expert is making the link between the 6% instatenous drop that become 1% before closing .
Yes, the galaxy s3 will be the major blow that will surely knock HTC even lower than the ranks of Sony Ericsson, lol not that bad but they won’t be able to compete with Sammy when it comes to whoever is planning these amazing devices.