Feeds

HTC struggling as profits drop 70 per cent

Taiwanese handset maker crosses fingers for One series

Beginner's guide to SSL certificates

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.