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HTC's revenue for July plummets down, decreasing HTC One (M8) sales most likely to blame

HTC's revenue for July plummets down, decreasing HTC One (M8) sales most likely to blame
Several days ago, we shared the news that HTC itself is pretty pessimistic about its Q3 financial outcome, because the HTC One (M8) flagship won't be capable of rivaling Samsung's and Apple's soon-to-be-refreshed lineup any more. The company's financial report for July is out, and it seems that the fears might be real – HTC's revenue for the month nosedived to depths that have not been seen in five months' time.

The company scored just $353 million (NT$10.6 billion) during the period, which is substantially lower than the $730 million (NT$21.91 billion) that were brought home. Back in July 2013, HTC accounted for $523 million (NT$15.72 billion). We are talking about a pretty serious, roughly 50%-decrease in profits here, which is nothing else but alarming for the struggling smartphone maker. Things were rather different just a month ago, when HTC reported that it has succeeded bringing home bigger profits in Q2 2014, more than in the three quarters before it.

You might remember that HTC didn't find its place among the manufacturers with the most prominent presence in Q2 2014, as some local Chinese brands, such as Xiaomi, Lenovo, and Huawei, have already settled on the market and eaten most of HTC's already diminishing market share. And as market share goes down, profits are bound to go down as well.

source: Focus Taiwan via Android Central

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posted on 04 Aug 2014, 07:37 5

1. XperiaFanZone (Posts: 2112; Member since: 21 Sep 2012)

If Nokia went for Android it would have been much worse than what is happening to HTC. Unrelated, but yeah.

posted on 04 Aug 2014, 07:42 9

2. CyberFalcon (Posts: 223; Member since: 17 Apr 2014)

Thats not true...
With pureview tech and nokia's build quality it ll have atleast 20 % market share...

posted on 04 Aug 2014, 07:44 3

4. CyberFalcon (Posts: 223; Member since: 17 Apr 2014)

* HAAC mic and the assertive display too

posted on 04 Aug 2014, 08:57 5

12. taz89 (Posts: 2014; Member since: 03 May 2011)

Yep, I'll always believe that if Nokia had taken Android seriously before samsung had a huge lead, they could have in the UK, European markets etc been very successful. The thing that bugs me is that symbian and Android were not far apart in terms of usability, customisable etc so I think more symbian users would have been happy to jump from symbian to Android rather than wp. I would bet majority of Android users are ex symbian users like me, it was just a more natural upgrade.

posted on 04 Aug 2014, 12:06 2

26. ECPirate37 (Posts: 195; Member since: 14 Jul 2011)

I'm ex Symbian. I loved symbian on the old Nokia phones. And I was disappointed when new android phones first came out, and Nokia did nothing to catch up.

Now I'm a phandroid, but I am all for as many os that the market will allow. Competition is GOOD. I do wish that there was a flagship Nokia Android though. :-/

posted on 04 Aug 2014, 09:47 4

15. Liveitup (Posts: 1798; Member since: 07 Jan 2014)

Samsung and other Android OEMs would have killed off Nokia. They did the best thing going with WP.

posted on 04 Aug 2014, 11:28 5

25. LetsBeHonest (Posts: 1442; Member since: 04 Jun 2013)

I think they(nokia) should time travel back to past and go with android and check their result. Other than that we really can't say whether nokia will succeed or fail by choosing android . Even most analysts/billionaire companies fail to make future predictions so don't think u can make proper predictions.
and NOKIA is not HTC. they are two different. Many doesn't even know HTC but ask any dump dude they'll definitely know NOKIA.

posted on 06 Aug 2014, 04:04

41. dmakun (Posts: 320; Member since: 06 Jun 2011)

+1 for you sir. Excellent comment! I couldn't have said it better. I believe it was a No brained and Nokia should have adopted Android even 3 years later than Samsung. Not sure how old Xiaomi is with android but I imagine their production capacity couldn't match Nokia 3 years ago.

posted on 04 Aug 2014, 20:21

37. sgodsell (Posts: 3629; Member since: 16 Mar 2013)

Is that why after 4 years WP is still looking at pathetic sales and market share. With only 2.7% of the market last quarter.

posted on 04 Aug 2014, 10:28 1

21. NokiaFTW (Posts: 2071; Member since: 24 Oct 2012)

With Samsung's marketing and the iPhone's popularity, I think Nokia would've had to sell itself off in 2012 itself.

posted on 04 Aug 2014, 10:34 3

22. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)

Still don't see why the fanboys are that convinced about the business side of things without an actual basis for their predictions.

At least 20%? Where does this analyst come from? Nokia's previous success? Key word being previous. The at least 20% thing only holds true if one, people still cared about Nokia. And two, the only reason People stopped caring was because of symbian. And three, android is the OS that people want.

According to Apple's massive market research, none of those were true and they saw the opening and took it.

So please, stop making these BS inferences like Nokia still had its shiny aura. If they had the past Nokia mojo that made them number 1 then yes, they would have at least 20% of Android if they chose to. But if they still had that aura they wouldn't even have to turn to Android to get at least 20%.

Geez, you Nokia fans are starting to sound worse than the HTC fans that blame marketing only. I guess all Nokia fans are now professional analysts and all HTC fans have marketing degrees now. Lol

posted on 04 Aug 2014, 15:26 1

30. Liveitup (Posts: 1798; Member since: 07 Jan 2014)

Stephen Elop stated the popularity of Samsung dominating Android as one of the reasons they did not go with Android. That is basis enough. Him and the other Nokia board members knew about of Nokia's troubles.

posted on 04 Aug 2014, 18:30 1

32. Furbal (Posts: 980; Member since: 22 Sep 2012)

A 930 with KitKat would be pretty damn nice.

posted on 04 Aug 2014, 07:42

3. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)

Yes, this is also applicable for all other runner ups. Even for chinese OEMs.

But wow M8. :P

posted on 04 Aug 2014, 08:11 3

6. boosook (Posts: 1436; Member since: 19 Nov 2012)

We'll see how much the M8 with WP will sell...
HTC made lots of mistakes during the last three years, and it's still making them, that's why they aren't selling.
Nokia would have sold 10 times more with Android.

posted on 04 Aug 2014, 09:09 2

14. StraightEdgeNexus (Posts: 3689; Member since: 14 Feb 2014)

Nowhere. Go ask half the world what htc is? They don't have a clue. And even the "nowhere near tech" dudes know nokia.
Nokia's brand recognition is still huge. Not ditching outdated symbian sooner and adopting wp were their grave mistakes thanks to the trojan horse.
If nokia would have adopted android, I'm sure Samsung wouldn't have claimed the android throne.

posted on 04 Aug 2014, 10:21 1

20. rkoforever90 (Posts: 227; Member since: 03 Dec 2011)

if nokia went android samsung should have been in same situation as htc

posted on 04 Aug 2014, 11:11 1

24. LetsBeHonest (Posts: 1442; Member since: 04 Jun 2013)

Future is unpredictable. HTC is in this position because they've been making too many mistakes recently (ultrapixel). And as for nokia nokia should've gone with android way before or at least would've made proper android smartphone along with WP (my opinion).

posted on 04 Aug 2014, 13:13

29. Ashoaib (Posts: 3229; Member since: 15 Nov 2013)

Htc m8 is quite expensive as compared to rivals... they should price their phone right to be competitive... 800$ launch price vs 650$ launch of gs5 & g3 doesnt make sense

posted on 04 Aug 2014, 19:10

36. joey_sfb (Posts: 5741; Member since: 29 Mar 2012)

I for one would have stay with Nokia phone if they went Android that i know for sure.

After Stephen Elop took over, and announce the burning platform, the very next day i have my first Android phone.

Wonder how many old Nokia fans just hate the smack on his face.

posted on 04 Aug 2014, 21:14

38. engineer-1701d (unregistered)

The reason it didn't sell well we all know is because it has a four ultra pixel camera people don't want 4 ultra pixel or megapixel - just put a larger -mp camera and people would have bought it people are simple bigger means better in there brains

posted on 04 Aug 2014, 07:49 6

5. YodhaMali (Posts: 49; Member since: 05 Jan 2013)

And its crappy Ultrapixel camera to blame in turn.

posted on 04 Aug 2014, 08:36 5

8. PapaSmurf (Posts: 10456; Member since: 14 May 2012)

It really isn't though. HTC fails in the marketing department. If they at least spent more on R&D and marketing, they can easily recover and bounce back from the red.

posted on 04 Aug 2014, 08:51 1

10. robert26101 (Posts: 107; Member since: 21 Mar 2014)

I think it has to do with marketing and the camera. I was going to get the M8 back when it was released but once it was confirmed to have the 4 ultrapixal camera I waited and went for the S5.

posted on 04 Aug 2014, 18:36

34. snowgator (Posts: 3583; Member since: 19 Jan 2011)

Marketing was just lost on me for their M8. What on Earth was Gary Oldman rambling on about, and why would it convince me to buy an M8 over a Samsung based soley on commercials? Say what you want about Sammy, but they promote their phones and the features the company offers on them well with humor. Also, the consumer can relate to the situations Samsung presents it's characters in.

Oldman talking about hypnotizing you or repeating "blah-blah-blah"? Who approved THAT for the US market?

posted on 04 Aug 2014, 08:31

7. ajac09 (Posts: 1481; Member since: 30 Sep 2009)

but you said the m8 was the best android phone around.. so good that everyone is ignoring it.. yeah.

posted on 04 Aug 2014, 08:38 4

9. PapaSmurf (Posts: 10456; Member since: 14 May 2012)

Don't get me wrong, this phone is badass, but there's one thing HTC needs to learn from Apple and Samsung - marketing is EVERYTHING in the tech world.

posted on 04 Aug 2014, 08:56

11. nohatenofanboy (banned) (Posts: 515; Member since: 15 Jul 2014)

actually there wasn't many choices for htc. others made very good marketing about megapixels( they convinced ppl that higher MP is always better) as a result ppl thinks 4mp sucks and not worth to buy.
that fail was inevitable.

posted on 04 Aug 2014, 09:56

16. Muayyad (Posts: 236; Member since: 05 Oct 2012)

Yeah, mini 2 sold better because of the camera. You people make me laugh. Nothing wrong with the UltraPixel except small size pictures but they have good details if you don't know.

posted on 04 Aug 2014, 10:20

19. nohatenofanboy (banned) (Posts: 515; Member since: 15 Jul 2014)

I didnt say anything about ultrapixel or how bad/good it is. try to read my comment again you dumb

posted on 06 Aug 2014, 04:31

42. dmakun (Posts: 320; Member since: 06 Jun 2011)

Hi Smurffy, why you patronizing HTC here? Clearly the problems with this company is not solely "Marketing"! There is a reason besides marketing why someone will work into a store and pick up a GS5 over the" "premiumness" of an M8 and the sole reason cannot be marketing! Hint: my first 2 android devices were HTC legend and the desire HD and back then I thought Samsung's offerings were hideous until I used the GN1 and now I'm rocking a GN3 whilst waiting for the GNote 4.

Why do I prefer Samsung, well I love that it's more versatile and light even with the bigger screen. Love the super amoled screens with their "saturated" colors (funny how tech sites say that like it's a con). Then the removable battery of course.

I know I'm one isolated case in point and that the fact I have these reasons for abandoning HTC hardly explains the massive losses of the HTC market share but HTC can borrow several leafs from Samsung and "copy" a few strategies adopted by Samsung like LG has done in recent years.

posted on 04 Aug 2014, 09:01

13. StraightEdgeNexus (Posts: 3689; Member since: 14 Feb 2014)

One M8 was a phone that could, only if they would have ditched that ill-fated camera and played their marketing cards right.
I can't exaggerate how much they have improved and done all other things right after the 2011 disaster. They really stepped up especially in software side.

posted on 04 Aug 2014, 09:58

17. Mechanized (Posts: 13; Member since: 31 May 2014)

I think those blaming the camera are over estimating the average consumer. Joe/Jane generally has no idea about camera sensor on their future phone. HTC's problem is more related brand recognition. Their brand recognition pales in comparison to that of Apple or Samsung. People generally don't thoroughly examine the products on the market, they most often just buy what they know. This unfortunately means user experience, functionality, and high reviews matter little.

posted on 04 Aug 2014, 10:17 1

18. ryq24 (Posts: 722; Member since: 17 Oct 2011)

I think it is just a matter of time before lenovo or huawei or other Chinese company will buy htc. They do have some technology that will be very usefull.

posted on 04 Aug 2014, 10:50 5

23. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)

Plenty of issues with the M8 that other manufacturers just don't have.

A normal TPU case scratches the crap out of the chamfered edges. The later batches of the iPhone 5/5s and no huawei handsets have this problem.

It's the biggest 5 inch screen phone ever, not to mention the heaviest. People like light and compact but they still want the big screen. One of the reasons credit card wallets with money clips are taking over normal wallets for men. Suck TC and Sony just do not understand this with their designs.

Which leads to poor ergonomics. The power button is just in the hardest place to reach and so are the on screen buttons. The gestures are awesome but they don't work even close to 100 percent of the time.

Loose and rattling volume rockers. No other manufacturer has these and yet HTC has been doing this since the HTC One.

Poor finishing around the head phone jack. The plastic ring looks like it's shredded or about to fall off. HTC actually made small strides here. The USB port was just as bad as the headphone jack on the One X, M7, and HTC 8x.

Gaps galore. They claimed a gap less design on the M7 but that plastic trim was just piss poor with gaps everywhere. The M8 is better but the plastic pieces covering the speaker and the ear piece are beginning to show gaps where it's nearly impossible to get the trapped dust or particles out.

That is not even getting into the overheating and dead pixels and dust under the screens.

The reason HTC fails is far from a poor camera and marketing.

Again, no other manufacturer has these issue HTC refuses to fix. Well, Sony handsets are still way too bulky in favour of useless hardware no one wants too but they are the exception.

posted on 04 Aug 2014, 18:31 2

33. Furbal (Posts: 980; Member since: 22 Sep 2012)

Dont forget the crappy coating on the camera lenses. Its pretty bad on mine, looks like a ton of fairly bad scratches.

posted on 05 Aug 2014, 05:35

39. jojon (Posts: 332; Member since: 11 Feb 2014)

Agreed, and very well written. A lot of observation there

posted on 04 Aug 2014, 12:51 1

27. GreekGeek (Posts: 1276; Member since: 22 Mar 2014)

It was heavily advertised in Cap't America : Winter Soldier, Haha
This was Nick Fury's phone! How could it flop? dang
I guess the money were all put to waste then

posted on 04 Aug 2014, 13:01

28. Ghost04 (Posts: 335; Member since: 03 May 2014)

HTC lost ground because of its ULTRA-PIXEL 4 MP camera .

posted on 04 Aug 2014, 16:36

31. cncrim (Posts: 823; Member since: 15 Aug 2011)

HTC that is lesson learn for you, even the top player like Apple listen to customer. Even she is not adapt it fast, but she does bounce to customer.

posted on 04 Aug 2014, 18:50 1

35. snowgator (Posts: 3583; Member since: 19 Jan 2011)

I also think there is a really large pink elephant in the room no one is talking about: Past performance. When I first started learning about smartphones and kicking around sites to be sure I was getting a decent deal about 2010, I fell in love with HTC. I loved their build and the way their phones looked. Then, I started paying attention to how they supported their devices. One of my friends on Verizon was an early adopter of the Thunderbolt, which was laggy, horrid battery life, and had software glitches galore. No fixes came, and it was forgotten quickly. As a WP fan, my wife jumped on the HTC Titan and the Titan 2. The Titan was one of the worst experinces I have ever had- audio problems, lag, keyboard response problems, website's freezing. Say what you want if you are not a WP fan, but never has a WP device been accused of stutter. Again- no firmware updates, no help from their websites, nada. The Titan 2 was better, but there was STILL no support from them and it had audio problems which could have been fixed. My Samsung Focus S had several updates and firmware improvements while I owned it in the same time frame.

These are not isolated incidents. HTC needs a few "knock it out of the park" hits, and then needs to show they will stand behind their products. Myself? I will not give HTC one red cent until I see how they support the ONE series and their WP 8X's that are out. There are HTC fans, and they responded to these products, then the sales drop because new buyers are sticking to what they trust. I still feel HTC has a good chance to rebound, but support is expected. Prove that, and they may become actually put a whole 4 quarters of profit together...

posted on 05 Aug 2014, 10:45

40. gaara6775 (Posts: 738; Member since: 20 May 2014)

They still make the best looking phones on the market and will continue to do so. I'm sad to see they're not bouncing back but their time will come.

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