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HTC’s fortunes aren’t going so well. At the start of the year, the company announced a 22 per cent decline in operating income, year-on-year. Today, it’s had the misfortune to announce that its second quarter net profits for 2012 are down a hideous 57 per cent compared to the year before.
That’s a drop in net profit of more than £160 million. HTC is pointing to problems with US imports and weaker-than-expected European sales to explain it away. But are we in fact just seeing the first signs of the Taiwanese company’s slow decline? Is HTC the next RIM? [HTC via Reuters]
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Pretty surprised. I thought the One X had done well?
I really hope they stick around because, in my eyes, they’re joint top with Samsung for making great Android phones.
I agree, easily one of the best Android manufacturers. Perhaps it’s more to do with the tablet side of things not really kicking off and the volume of phones last year. Would be interesting to fast forward a few months and take stock then.
Agree that it’s probably to do with an amazing 2011 rather than a terrible 2012. That and the diabolical Apple screwing everyone over in the US.
+1 first thing that came to mind after reading this. Pretty surprised.
You Blink. You lose !
I don’t think HTC has firepower. It’s pipeline has probably dried out.Innovation is what keep technology companies alive.
Still making £150 million per quarter then?
Not as huge as the energy or train cartels, but hardly to be sniffed at.
Although I’ve always believed that product is key, the phone market has shown that marketing and brand awareness are key. Apple realised this early on and Samsung have followed their strategy. Everywhere you look you see adverts for the GSIII but the only HTC advert I was aware of was that sky diving fashion shoot one that was wince-inducingly bad.
The One X is certainly the best phone I’ve owned and just as good as the GSIII but most people are barely aware it exists – they want either an iPhone or Galaxy.
Although HTC isn’t yet in the position that RIM and Nokia are, it’s going to have to make a really big marketing push to get itself back at the top table.
Really goes to show how stupid the general public is when buying smartphones (or anything really) if all it comes down to is the one they have seen more ads for
It’s when you speak to somebody outwith the tech community that you realise how true that statement rings.
Most people don’t read the tech media, so I suppose they’re often only made aware of a product when they see an ad for it.
Spot on. When you see the only non-Apple phone being advertised on phone shop windows is a Samsung, you know the game’s up.
HTC seem to be too understated with marketing. They need to do some snide trolling (you’ve been Samsunged!). It will get them talked about in the press, media, and amongst people.
The HTC One X is a cracking good phone with specs that run circles around nearly every other similar device out there now. They need to do more to show this with fighting words, real talk.
In this economy, just making a profit is pretty good going. Sony recorded a record loss of £3.5bn in their last financial year. Compare that to HTC’s £160m profit.
HTC are currently producing some compelling hardware, whereas RIM haven’t produced a truly compelling product for years. HTC have a long way to go before I’d start making comparisons between the two of them.
I am suprised this was tat case, HTC seem to have decent market share from previous reports(unless i just made that up) but like with all manufacurers ‘innovation’ is key. RIM have made the same phone wit the same features for years and thats why they are failing. HTC just build phones, unless they create something to properly compete then yes they will decline. But this is te same for anyone in this market as its so competitive.
Im all for lots of phone makers on the market so choice and new products keep being created so it would be a shame if they went. Least they appear to be doing more than RIM…
Personally I would have thought of all the big phone manufactures Motarola was closes to the edge. Unlike Nokia their parent company doesn’t really need them to stay afloat for their business model in the mobile sector to survive.
Have Motorola shown many signs that their business model differs significantly from everyone else’s since they were bought by Google? I haven’t seen any Motorola Nexus devices yet.
No, Google have said that Motorola will continue to be run as a separate business. It could well be that Google bought them purely as an insurance policy, in case other OEM deserted Android. Much in the same way Microsoft has effectively bought Nokia to ensure they can stay in the game despite the low amounts of interest in Windows Phone thus far and OEMs cutting back/cancelling WP production.
True, though I suppose MS were struggling to even get their foot in the door when they bought out Nokia. (Is ‘bought out’ the right term? Perhaps ‘bribe’ is more appropriate…)
Android is on far healthier ground, at least where their phone hardware is concerned. Tablets are another story, though with any luck the Nexus 7 will alter the landscape.
I think Microsoft have decided that it’s easier to own Nokia by proxy than to try and buy them out, look at the time and trouble it took Google to get the Moto deal through.
I wonder if filling the marketplace with similarly specced Android phones was their downfall rather than concentrating on a couple of flagships they could push. Like what they’re now doing with the One series.
The article asked me a question, so I’ll give an answer:
Yes.
No
Maybe
No
It’s hardly a surprise that having their phones blocked from import in the US would cost them money – It’s not a secret that most European economies are in the toilet – outside of these facts their sales are good and their phones are getting rave reviews – two things RIM can’t manage so it seems silly to compare the two.
If you remember back to last year’s sales numbers they were ridiculous year on year so I’m not surprised that the figures look like they’ve taken a beating. If you look back at over the past 3 years I’m sure things look pretty healthy.
im not suprised hey bring a new phone out every few months it seems, also the one x is not that great to be honest