HTC struggling as profits drop 70 per cent
Taiwanese handset maker crosses fingers for One series
HTC’s fortunes took another turn for the worse on Friday after the Taiwanese handset giant revealed that first quarter net profits dipped a massive 70 per cent from the same period last year, as the firm continues to struggle against the likes of Samsung and Apple.
Profits stood at NT$4.5 billion (£95m) for the first three months of the year, while revenues went down 35 per cent year-on-year to NT$68bn (£1.4bn).
The writing was on the wall for HTC after the firm missed analyst estimates with a glum Q1 2012 forecast in February predicting revenue of between NT$65bn and NT$70bn (£1.4-£1.5bn).
Analysts have put HTC’s demise down to its inability to carve out a decisive brand identity and differentiate from the multitude of rivals all selling Android handsets.
Consumer confusion over its many product lines also put it at a disadvantage in the huge Chinese smartphone market, where brand identity matters even more because up to 70 per cent of handsets are sold carrier independent.
The firm will be looking to draw a line under its latest disappointing financials and hoping to reinvigorate its smartphone business after the launch of the One series.
This Tegra 3 based range, announced at Mobile World Congress, has been pretty well received so far and could yet turn the Taiwanese firm’s fortunes around by proving a hit with consumers.
In an increasingly crowded marketplace, Samsung and Apple are the two firms which represent the biggest challenge to HTC getting back on track, according to analyst firm Gartner.
“HTC’s real challenges are Samsung’s next flagship Galaxy and Apple’s next iPhone, which we still have to wait and see,” analyst CK Lu told The Reg. ®
They appear to be 'doing a Nokia'
Releasing loads of handsets, all at the same time, pretty much all the same specs (but with silly differences like one has a 'X' coloured case or an integrated dog whistle or something equally useless in the real world).
You walk into a phone shop (or look online) and see a bunch of HTC handsets that look the same, then you see other manufacturers with this that and the other differentiating almost every model.
Re: How the mighty have fallen....
"To me it seems like the Jump to Android was the mistake, they had taken Current Gen tech which was amazingly quick with WM 6.5 and slapped Android on it which ran like crap and was very unreliable."
Dunno about that - I've played with plenty of HTC's and android seems to run similarly to the Samsung galaxys.
"then they flooded the market with almost identical units"
Hit the nail on the head with that. I looked at a HTC last time I upgraded and found 3 extremely similar HTC handsets that would have suited me - their R&D bill must be huge (and unnecessarily so...)
Pre-installed software and trust?
HTC need to push LESS of their own sofware IMHO - I would love my HTC Desire even more, if only I could legitimately remove the pre-installed bloatware like Stocks, Footprints et al...
I mean, I wonder why it is that Stocks, described as a means for you to 'track' your company stocks and shares holdings, needs to have Location services access, Hardware control to record audio and take pictures, System settings access for UI, global, mount/unmount filesystem, process listing as well as SMS / MMS edit and read...