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HTC sees third quarter revenue down as much as 23%

Posted: , by Alan F.

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HTC sees third quarter revenue down as much as 23%
Despite launching its most acclaimed smartphone yet with the HTC One X, the Taiwan based firm continues to struggle in the marketplace. After a terrible second quarter, it looks like more of the same for HTC in Q3. The company has announced that revenue for the period will be down as much as 23% sequentially, dropping to NT$70-80 billion ($2.3-2.7 billion USD) from NT$91.04 billion ($3.04 billion) in the second quarter. Margins are expected to fall 2 points to 25% for gross margins and 7% for operating margin. All this means that HTC is making less of a profit on the smaller amount of money that is coming in to the company.

HTC's flagship HTC One X

HTC's flagship HTC One X

While HTC doesn't give reasons for the worsening earnings forecast, one simply needs to look at which smartphone is in everyone's hands and that is the Samsung Galaxy S III which has already sold more than 10 million units. And in a matter of weeks, HTC will have the next Apple iPhone to contend with. It's a one-two punch that just might knock HTC to the canvas for the count.

HTC recently closed its offices in South Korea in a bid to cut costs, but it is going to require more than shrinking spending to turn things around. The company thought it had a major hit with the HTC One X, but HTC is going to have to go back to the drawing board to come up with a model that can challenge the Samsung Galaxy S III and the next iteration of the Apple iPhone.

The company recently changed tactics and decided to focus on launching a smaller number of higher quality phones over the year. This resulted in the HTC One series which includes the HTC One X, the HTC One S and the HTC One V

source: SlashGear

26 Comments
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posted on 03 Aug 2012, 05:13 2

1. wendygarett (unregistered)


H T C = R I M

posted on 03 Aug 2012, 05:15

2. Wiki_jaan (Posts: 701; Member since: 24 Jun 2012)


= R I P

posted on 03 Aug 2012, 09:51

24. EclipseGSX (Posts: 1552; Member since: 18 Oct 2011)


HAHAHA...NO

posted on 03 Aug 2012, 05:56 6

3. IamYourFather6657 (Posts: 321; Member since: 01 Jul 2012)


Sad cause I think the OneX is better than the s3
Even people asked me what's the best quad core phone in the market I will tell the, take a look at the OneX because cheaper than s3 , beats audio , better screen , better ui and design but they will still buy the s3 because HTC doesn't really have the COOL status here in Malaysia unlike Samsung and apple

posted on 03 Aug 2012, 06:18 2

6. PhoneArenaUser (Posts: 5461; Member since: 05 Aug 2011)


Few days ago my friend asked me, what I think about HTC One X and Samsung Galaxy S III. And I told that in my opinion, better to wait for new Nexus device. ;)

posted on 03 Aug 2012, 06:42

11. MeoCao (unregistered)


a Nexus built by Motorola to be exact.

posted on 03 Aug 2012, 07:00

15. PhoneArenaUser (Posts: 5461; Member since: 05 Aug 2011)


There is rumors that there will be more than one Nexus smartphone this year. But who knows.

posted on 03 Aug 2012, 07:20

17. MeoCao (unregistered)


There may be several Nexii, but only 1 built by Motorola can be big success b-c SS or HTC will surely hold back some key technologies for their own flagships.

posted on 03 Aug 2012, 07:23 1

18. IamYourFather6657 (Posts: 321; Member since: 01 Jul 2012)


yeah the s3 is faster than the OneX , but my point is OneX is fast enough . How fast do you want your phone to be ? The old nexus one days (android lag ) are long gone .
From how i think , GNexus is launched at November next year , so its gonna be a long wait and will be launching after the next iPhone .
+ GNexus is the same price with the HTC OneX here while galaxy s3 cost usd100 more unlocked
Normally i wont recommend the iPhone to other people because hey , it wasnt as good as the androids now and a new one is coming anyway . (except to some not advanced users , like my 70 year old uncle , you get the idea )

posted on 03 Aug 2012, 07:25

19. IamYourFather6657 (Posts: 321; Member since: 01 Jul 2012)


and those that buy iphone will just buy it without asking anyone's opinion anyway

posted on 03 Aug 2012, 10:28

25. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


I agree with you... S3 is faster than the One X. Since I got the One X, I didn't feel like I absolutely needed S3. If I didn't get the One X, I would probably lean toward getting the S3. Even tho One X is slower, it's still a solid device that will last for a long time.

posted on 03 Aug 2012, 06:03 1

4. andro. (Posts: 1936; Member since: 16 Sep 2011)


The one x is a top phone and sold well from q1 up to the time the s3 was launched,then sales took a big hit. The problem with HTC phones is that they have become very samey,a well as the one x looks it still shares alot of the HTC generic phone look. Sense styling has remained the same and needs a major revamp also,especially the icons.

HTC needs to go out on a limb and release a breathtaking phone like the concept HTC1 phone as seen here

http://www.mobilemag.com/2010/07/12/concept-htc-1-phone-is-an-elegant-dream-visualized/

posted on 03 Aug 2012, 06:41

9. MeoCao (unregistered)


They will get bankrupt if they make this phone, LOL. I think 1S design is great, all they need is better screen, better camera and JB.

posted on 03 Aug 2012, 06:47

13. andro. (Posts: 1936; Member since: 16 Sep 2011)


Well not this phone to every single detail tech wise but a phone with a very different design similar to this which would be a welcome break from the HTC generic look

posted on 03 Aug 2012, 07:13

16. MeoCao (unregistered)


Different? This looks exactly like Experia models.

posted on 03 Aug 2012, 06:15 2

5. sharique (Posts: 8; Member since: 31 Jul 2012)


Only if they wouldn't have dropped the Sd card and removable battery they would have had better sales!

posted on 03 Aug 2012, 06:37

8. MeoCao (unregistered)


Sure they will sell more with SD slot and removable battery, but I think the main flaw is the poor camera and lack of a killer feature required for a top phone.

posted on 03 Aug 2012, 06:50

14. andro. (Posts: 1936; Member since: 16 Sep 2011)


The lack of an sd slot is certain a key point,I've seen many a customer becoming undecided on purchasing the one s or one x as there wasn't a micro sd card slot

posted on 03 Aug 2012, 07:29

20. IamYourFather6657 (Posts: 321; Member since: 01 Jul 2012)


i remember reading an article that says 99% of consumers dont care
Well , i dont .
The iphone doesnt have it anyway and i dont see anyone complaining
Just get a car charger or charge it while at work for removable battery
For SD cards i dont see the point of it the internat storage of the OneX is 32GB and you get 25gb of free dropbox anyway

posted on 03 Aug 2012, 06:32 1

7. MeoCao (unregistered)


After last year success HTC has lost it's way. There were too many models. slow updates while SS got almost everything right with Galaxy line. I think HTC has the right strategy with the One series but the execution was not on par with SS's GS3.

But I think JB came to the rescue and if HTC can quickly adopt it for their One X and One S they will bounce back.

posted on 03 Aug 2012, 07:32 1

21. IamYourFather6657 (Posts: 321; Member since: 01 Jul 2012)


HTC's update is faster than Samsungs
Example Evo 3d got ics before epic 4g touch
sensation and sensation se got ics before galaxy s2
Old phone such as incredible s got ics while galaxy s1 series (even the s plus , which have the same cpu and ram as xperia arc s ) doesnt not

posted on 03 Aug 2012, 06:42

10. darac (Posts: 2156; Member since: 17 Oct 2011)


This has nothing to do with the one x' quality in comparison to iPhone.
Actually, with JB I see one x as superior even to iPhone 5.

posted on 03 Aug 2012, 06:44

12. darac (Posts: 2156; Member since: 17 Oct 2011)


Seriously, I look forward to that future comparison

posted on 03 Aug 2012, 07:41 1

22. darktranquillity (Posts: 284; Member since: 28 Feb 2012)


No sd slot and its a No to many.

posted on 03 Aug 2012, 09:35

23. Doakie (Posts: 1107; Member since: 06 May 2009)


You know what it's killing HTC? Carrier exclusives, and stupid moves like fixed batteries and lack of micro sd card slots. Because as a long time HTC fan I just looked on in disappointment when I saw ATT get the One X exclusivity. Then when I saw its lack of expandability I thought to myself, I wouldn't have bought it anyway. Now I'm the happy owner of a Galaxy S3. No user swappable batteries and fixed memory? Who do they think we are iPhone buyers?

posted on 03 Aug 2012, 12:36

26. pfroo40 (Posts: 28; Member since: 12 Jun 2012)


Personally I think the One X is the best looking android phone out right now in terms of the handset and skin. Performance of the US version is on par with the S3 (albeit with less RAM, which could possibly cause issues later on), battery life is similar, screen is better. I prefer the international One X because additional storage and better gaming support even though the battery life isn't as good. 16GB is too small of storage for the US version, IMO, should have released larger capacity versions since it's not expandable. I've had Samsung phones forever, had the Captivate and Droid Charge, and honestly both were laggy, charge had atrocious battery life and neither had good update support.

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