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HTC continues its frustrating financial tailspin
While HTC continues to flail and fumble its way into a competitive market position with the One series and an alleged tablet, the facts are clear: the company is seriously hurting. Today the company formally announced lost revenue between July and August 2012. Those numbers? $804M in August, down from $835M in July.
What this means in laymen’s terms is the company is having a hard time trying to come up with a formidable game plan against Samsung and Apple . You can’t fault them, really. Apple posted numbers just after the recent verdict, that could have risen Jobs from the grave into a 2 step jig, were such things possible. Samsung may have lost the case in America, but their bottom line isn’t hurting yet, what with the S3 still rocking palms worldwide and the G-deuce out soon. These are A-list players and HTC may have to scratch its head a while longer. Sometimes waiting things out is a good strategy in this industry.
A secondary report of total unaudited consolidated revenues from January to August 2012 of almost $7B is not a highlight the company would like to share, but these are obviously hard times for the Taiwanese manufacturer. It, and its loyal fans, can only hope the event scheduled for September 19th will boost quarterly profits. In addition, the company has decided to take on Windows 8 alongside Android, so it is reaching out to Microsoft as a possible answer to its dilemma.
What we know is that HTC is forecasting, for itself, doom and gloom before the year ends. It says it expects gross and operating margins to drop 2% in each category. This represents a staggering 22% drop in overall revenue by year’s end. Failed ventures in Beats Audio and OnLive haven’t helped matters at all, either.
The real test will be the upcoming Q4 holiday season. If HTC’s newest release, like the Desire X, or this mysterious phablet doesn’t kickstart the progression to better days, I predict a dissolving of the company by end of 2013. You can quote me on that.