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HTC's financial woes continue

Posted: , by Chris P.

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HTC's financial woes continue
Taiwanese HTC released today unaudited results for Q2 2013, and while the results are an improvement over figures for Q1, they continue to indicate that the troubled company is a long way from financial recovery.

According to the statement, total revenue for the second quarter reached $2.4bn, a sizable increase from the $1.4bn in Q1. Of that, net income after tax came in at a meager $41.6m, an improvement over Q1's underwhelming $2.8m.

Regardless of its comparatively miniscule scale, this clearly is an improvement, right?. Not quite. When compared with on year numbers, the prospects of HTC are looking far less rosy, especially if you consider the seemingly small dent the manufacturer made with a solid offering in the form of the HTC One and the HTC Butterfly range. To put this into numbers, year-on-year revenue has dropped $600m, net income after tax has nearly evaporated from $297m down to the aforementioned $41.6m – that's an 83% drop!

With new devices already at the end of the production pipeline, we'd expect that HTC still hasn't completely lost the year. Unfortunately, analysts disagree:

"HTC may have new products in Q3, but competition from Apple and other Chinese brands are fierce," Taipei-based analyst Peter Liao commented. "It'll be hard to keep the growth."

Goldman Sachs analyst, Michael Shieh, also commented:
 
"The big drop on June sales likely proves the HTC One sales momentum slowdown and 3Q may be only flattish as is the market expectation."

source: Reuters

48 Comments
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posted on 05 Jul 2013, 07:48 7

1. wendygarett (unregistered)


Competition from Chinese brand are fierce? I thought HTC itself is also Chinese brand....

posted on 05 Jul 2013, 07:51 36

2. PapaSmurf (Posts: 8306; Member since: 14 May 2012)


The very first word on the article Wendy...

posted on 05 Jul 2013, 08:19 6

8. SuperAndroidEvo (Posts: 4084; Member since: 15 Apr 2011)


You don't have to break wendy that hard. lol

He is right though. Taiwanese.... is not Chinese.

posted on 05 Jul 2013, 08:46 8

14. neutralguy (Posts: 1152; Member since: 30 Apr 2012)


Technically, wendy is right. Taiwanese are chinese. Get your facts right.

posted on 05 Jul 2013, 11:44 1

29. SuperAndroidEvo (Posts: 4084; Member since: 15 Apr 2011)


READ comment #28.

lol

posted on 05 Jul 2013, 12:32 3

33. b1acktiger (Posts: 207; Member since: 19 May 2012)


China are Taiwan are different countries and yes, Taiwan were a part of China before. Not now. like czechoslovakia. Now Czech Republic and Slovakia.

posted on 07 Jul 2013, 05:28

47. neutralguy (Posts: 1152; Member since: 30 Apr 2012)


That's why I used the word technically.

posted on 05 Jul 2013, 13:25

35. oister85 (Posts: 400; Member since: 27 Apr 2012)


Yeah they use to be Chinese but they separate from china.

posted on 05 Jul 2013, 10:41

21. Cyberchum (Posts: 269; Member since: 24 Oct 2012)


Last I checked, Tan is Chinese.

posted on 05 Jul 2013, 10:43 1

22. Cyberchum (Posts: 269; Member since: 24 Oct 2012)


Last I checked, Taiwan is Chinese.

posted on 05 Jul 2013, 11:05 2

27. JunitoNH (Posts: 907; Member since: 15 Feb 2012)


You are wrong!!! Technically Taiwan is part of China, just like Alaska is part of the US. Therefore, anything manufactured in Taiwan, is Chinese made.

posted on 05 Jul 2013, 10:55

26. SmartPhoneStream (Posts: 160; Member since: 21 Jun 2012)


Taiwan is technically Chinese but not a China Company. Taiwan is officially the Republic of China, while China is the People's republic of China. Taiwan claims sovereignty over all of mainland PROC while the PROC claims Taiwan to be it's 23rd state. So it depends how you look at it if Taiwan is Chinese or China is Taiwanese.

posted on 05 Jul 2013, 11:42 3

28. SuperAndroidEvo (Posts: 4084; Member since: 15 Apr 2011)


Thank you. Anyone in Taiwan will tell you they are not Chinese. I grew up with a Taiwanese kid & he always rep'ed Taiwan NOT China.

Just like Puerto Rico & Guam are territories of the U.S. but are NOT considered the United States. That goes to neutralguy, Cyberhum & JunitoNH.

posted on 06 Jul 2013, 03:10

39. Taters (Posts: 3034; Member since: 28 Jan 2013)


LOL Taiwanese are Chinese no matter how you spin it. People in Quebec do not want to be Canadians but too bad, they are. Same with the Taiwanese, they are Chinese even if they do not want to admit it.

Just because I say I am not something doesn't mean that I am not. It could be just me talking s**t.

posted on 05 Jul 2013, 07:52 9

3. Slammer (Posts: 1033; Member since: 03 Jun 2010)


I feel really bad for HTC. I loved its products and was a perpetual buyer of its phones. But, certain amenities are important to me as well as many other long time customers. It didn't listen to our requests to keep these certain criteria so many of us moved on. It now reaps the consequences of adopting Apple's arrogance in what ever deal it signed with Apple.

Plain and Simple: rather than signing a pact with Apple, you should've been listening to your long time customers.

John B.

posted on 05 Jul 2013, 10:04 4

20. Topcat488 (Posts: 1150; Member since: 29 Sep 2012)


Hey Slammer, you gave away the whole problem of HTC, in your second sentence. They need better timely updates of their smartphones... But they prefer that their customers are perpetual buyers of a new phone "updated".

posted on 06 Jul 2013, 08:54

44. rizevnarastek (Posts: 330; Member since: 06 Sep 2012)


It's in people's nature to always want better and newer things. You'll buy the new product anyways since it has a better camera, better battery life, better screen and so forth . ;)

posted on 05 Jul 2013, 07:54 9

4. PapaSmurf (Posts: 8306; Member since: 14 May 2012)


Oh HTC... The once good phone manufacturer is slowly dying. They make incredible devices, and my first was the HTC Sensation 4G, but when they refuse to update their phones that are a year old, they got a bad rep and brought it against themselves.

posted on 05 Jul 2013, 10:44

23. lallolu (Posts: 235; Member since: 18 Sep 2012)


I had the sensation as well and since they decided not to give it sense 4.1 not to talk of JellyBean, I gave the phone to my wife and bought a Samsung Galaxy S3 LTE.

posted on 05 Jul 2013, 08:01 8

5. Jason2k13 (Posts: 643; Member since: 28 Mar 2013)


even HTC ONE is not helping HTC, i mean HTC's profit was better in 2012.

posted on 05 Jul 2013, 08:08 14

6. belovedson (Posts: 832; Member since: 30 Nov 2010)


Samsung swoop them up

posted on 05 Jul 2013, 17:57 1

37. SleepingOz (unregistered)


#NextBigFlop

posted on 05 Jul 2013, 08:18 4

7. sonisoe (Posts: 329; Member since: 06 May 2009)


htc's miniscule marketing budget compared to samsung might be used as an excuse for the company's downtfall, but i dont buy that. htc has established a solild enough foothold for its brand since 3 years ago, in the us or internationally. they just hadnt listened to consumers/critics ie.android cripling sense and bad battery life despite generally beautiful hardware.

posted on 05 Jul 2013, 08:19

9. pyradark (Posts: 772; Member since: 10 Jun 2012)


where the hell did the 5 Million sold? or should I say ship and stack at store

posted on 05 Jul 2013, 10:00

19. SonyFindOneDroidple (Posts: 441; Member since: 11 May 2013)


One of the exec of htc said that the 5 million units is not true, it only came from unknown person reporting to wsj. htc never made official declaration of htc one's sales.. but i remember 1.2Million in May doubling what April made.. so april 600k

posted on 05 Jul 2013, 08:21 2

10. HASHTAG (unregistered)


I wonder if they had better product support would they not be in this situation? I like HTC, but with them releasing so many flagship devices last year (given that they released many high-end devices last year) they were just in a complete mess.

posted on 05 Jul 2013, 08:28 3

11. FlushGordon (unregistered)


The Oversaturated Mediatek China phones are slowly killing the high-end market

posted on 05 Jul 2013, 08:38 2

12. LordLust187 (Posts: 18; Member since: 05 Jul 2013)


It's a great company but with devices losing support before or sometime around a year and lack of expandable memory or at the most 64gb of built-in memory their sales will continue to drop, They need better smartphone support if they want people to continue buying their pricy smartphones and I should know cause when I had a Android from HTC it was awesome and HTC said it'd get updated but now it's not even going to get any updates and that's why I won't buy a HTC One is cause if I get it know will they continue updating it or will it be another device HTC leaves behind?

posted on 05 Jul 2013, 08:40 6

13. applesauce (banned) (Posts: 165; Member since: 26 Aug 2012)


It's unfortunate, but not unexpected. Folks now more or less thing of galaxies as android, just as Lumia is Windows Phone. HTC will have to be content with a much smaller piece of the android pie, and wrangle for position amongst Sony, LG, Motorola, ZTE, Oppo, Huawei, etc etc etc. Too crowded.

posted on 05 Jul 2013, 09:12 4

15. piyath (Posts: 151; Member since: 23 Mar 2012)


Trying is better than doing nothing.. Well done HTC..
I am a Samsung fan though.. Sammy is the King!

posted on 05 Jul 2013, 09:38 6

17. PapaSmurf (Posts: 8306; Member since: 14 May 2012)


They're not trying at all. They only care about their current flagships in the cycle and leave behind everything else. I honestly wouldn't be surprised I'd the One doesn't get updated past 4.3.

posted on 05 Jul 2013, 10:49 1

25. snowgator (Posts: 3210; Member since: 19 Jan 2011)


Well said. Doesn't matter if it is Windows Phone (I have had to contend with both versions of the HTC Titan) or their bread and butter Android devices. HTC now has a reputation of nice hardware, but I wouldn't want another one because they just do not fix software problems or push updates to devices that cost big time bucks under contract.

posted on 05 Jul 2013, 12:30

32. InspectorGadget80 (Posts: 6502; Member since: 26 Mar 2011)


That's why I never buy HTC phones. They never updated their phone because they don't want too.

posted on 05 Jul 2013, 09:25 3

16. XPERIA-KNIGHT (unregistered)


Keep innovating HTC and try your best to improve that marketing of yours as well and you will be fine..... your products are at the top of the list for me so keep em coming :)

posted on 05 Jul 2013, 09:46 4

18. MrKoles (Posts: 321; Member since: 20 Jan 2013)


They totally deserve those financial problems, If they want to sell us phones like Desire 200 with terrible specs and astronomical prices in 2013.

posted on 05 Jul 2013, 10:44 1

24. aditya.k (Posts: 461; Member since: 10 Mar 2013)


Yeah. Now price your low-end to mid range devices with a high-end device price, and you'll be out of the competition soon!

posted on 06 Jul 2013, 00:28

38. Adithya7184 (Posts: 316; Member since: 05 Mar 2011)


exactly. small example is HTC Desire C. it costs roughly $460 in india. Is there anyone who can buy that crap at that price?????

posted on 05 Jul 2013, 12:03

30. BillyBoy (Posts: 18; Member since: 01 Jul 2013)


Palm and HTC ex Qtek where the pioneers of smartphone. One is dead and the other one is en route to grave. Hail Mr Chou!

posted on 05 Jul 2013, 12:28

31. InspectorGadget80 (Posts: 6502; Member since: 26 Mar 2011)


HTC should learn too update their older device if they want too make more money.

posted on 05 Jul 2013, 13:14 3

34. JMartin22 (Posts: 1116; Member since: 30 Apr 2013)


Only proves my point that the blog, tech junkies and a lot of tech reviewers are idiots. Consumers care more about reliability, reputation and experience with their device, rather if some company banking on a phone to sell just because they put some soda can aluminum as the body of its chassis.

For every person I see complain about the aesthetics and build quality on one of these user base minority sites about a Samsung GALAXY S phone; there are several thousands of more who are satisfied. That's why it's consistently the best selling Android handset around.

posted on 05 Jul 2013, 16:41

36. darkskoliro (Posts: 978; Member since: 07 May 2012)


im not surprised considering ss is also taking a hit..

posted on 06 Jul 2013, 03:19 1

40. Taters (Posts: 3034; Member since: 28 Jan 2013)


Well deserved failing. HTC never ceases to amaze me how s**tty they are. My HTC One X had too many problems to count. My HTC 8x had earpiece issues and a rattling volume rocker. My HTC One has gaps all over the place and rough finish on the plastic band and the buttons were unresponsive. Then when they fixed the buttons with an update, my handset shut off right after and I had to boot into recovery to fix it. And just when I thought everything was okay and they can't suck anymore, my $100 dollar mastercard for a trade in was sent over a week ago and somehow it isn't here yet so the idiot company they hired might have lost it in the mail.

Talk about a s**tty company with no quality control standards whatsoever and they wonder why they are failing. The reviews that say HTC makes the best hardware are so off the mark it isn't even funny.

posted on 06 Jul 2013, 04:27

41. ap2012 (Posts: 12; Member since: 25 Jun 2012)


Taters, please just stop bashing and trolling on every htc article. You do not own a one x neither do you have a 8x. It's fine to hate on a company for whatever reason but you're spamming too much already and it's annoying for us readers to see a comment from the likes of yours all the time

posted on 06 Jul 2013, 11:16

45. Taters (Posts: 3034; Member since: 28 Jan 2013)


HTC fans in denial again and refusing to accept the truth. Everything I say is true whether you choose to believe me or not.

Anyways, if HTC was even 1/4 as good as their fans say they are, they wouldn't be in this mess, especially since they had a brand presence before. And if Samsung was even 1% as bad as they say, they wouldn't be successful either.

Dream on HTC fans, that is all you have left because you lost your dignity a long time ago.

posted on 06 Jul 2013, 11:43

46. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Taters who cares if they don't update there software!

There are Devs and Custom ROMs as there 2nd options, plan B.

HTC are the best in providing quality materials, and Sony for great super in designs. Samsung for specs, Nokia for camera, Lg all rounder perhaps. Apple for great quality apps. So why the hate for HTC? Its still Android and isn't that scrap Wp8! Even iOS is much better than Wp8®

posted on 06 Jul 2013, 08:49

42. rizevnarastek (Posts: 330; Member since: 06 Sep 2012)


Here you go and write how HTC is doing "bad" and they've just updated the FW on the One(global) and not a single article on it. It Was the fastest Android device till now. Now it's even faster :D :D

posted on 06 Jul 2013, 08:50

43. Sondae (Posts: 190; Member since: 02 Jan 2013)


Chinese phone maker are hard to beat specially the pirated or non branded Phone that doesnt update that offer a cheaper value. Its very common here in asia like rebranded Phone. HTC should work hard on what there costumer want and give a good publishing on there product.

posted on 09 Jul 2013, 00:20

48. itsdeepak4u2000 (Posts: 2665; Member since: 03 Nov 2012)


Poor HTC.

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