Feeds

HTC profits slump but Kim Jong Un's a fan

Quietly despotic?

Bridging the IT gap between rising business demands and ageing tools

Taiwanese smartphone maker HTC's profits slumped 91 per cent in the last quarter, but the firm received an unlikely endorsement after North Korean leader Kim Jong Un was apparently seen using one of its devices.

The company has spent most of 2012 fighting arch rival Apple in court and trying to streamline its operations.

Its financials announced on Monday revealed a 91 per cent fall in net profit in Q4 from a year ago to NT$600m (£12.9m), with revenues down 40 per cent to NT$60bn (£1.3bn).

The firm also predicted revenue for the first quarter 2013 could be as low as NT$50bn (£1.1bn) – a slide of 17 per cent from Q4 2012.

However, a picture obtained by the Korean Central News Agency apparently shows at least one world leader is on HTC’s side.

North Korean despot Kim Jong Un was photographed at a recent meeting with what appears to be a black Desire smartphone, probably bought in China.

It’s thought that HTC may have been chosen by the Supreme Leader in preference to endorsing a US company (Apple) or appearing with a Samsung device from South Korea – a country with which North Korea is still technically at war.

North Korea’s 3G network, Koryonet, was launched in 2008 with the help of Egyptian operator Orascom. Although reports suggest many locals do have devices, internet access and international calls are prohibited and widespread monitoring of calls and texts is suspected.

For HTC, it’s probably not the kind of publicity it was hoping for as the firm aims to turn its fortunes around in 2013.

Ironically the smartphone maker left Korea last year in a bid to “streamline operations”.

The firm has grown its business significantly in China – shipments there jumped nearly 400 per cent in Q2 2012, for example. HTC has also said it will offer sub-1999 yuan (£203) devices in a bid to tap the huge appetite for smartphones at the lower end in China as well as renewing a focus on emerging markets. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.