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HTC facing tough times in the near future

Posted: , by Victor H.

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HTC facing tough times in the near future
HTC was the pure emanation of Android success up until nearly the end of 2011 when something in the system broke, and the Taiwanese company stumbled. And that downfall will continue in the short term - the company just confirmed its expectations for lower-than-expected revenues, worsening investors’ fears about lack of innovation.

HTC projected a 36% decline in revenue Q1 2012 to between $2.2 and $2.37 billion (T$65 billion to T$70 billion), down from T$101.42 billion in the previous quarter. The company was optimistic about the long term perspective, though, saying its difficulties were "short term."

This aligns with analysts forecasts as the majority saw old HTC phones not selling well, and new products arriving only in late Q1 2012.

The Taiwanese company is expected to make a big comeback at MWC late this month with a quad-core super slim HTC Ville with a 4.3-inch display, and reworked HTC Sense. Another high-end device it will bring is the quad-core HTC Edge, Barclays Capital said in a report. HTC is rumored to bring four new devices at MWC, and analysts will be watching close the company’s efforts on differentiation. 

Margins are also narrowing down. HTC’s relatively healthy 12.7% operating margin is expected to decrease to 7.5%.

source: Reuters

HTC's financial troubles started to show after Q3 2011. Charts courtesy of Asymco.com
HTC's financial troubles started to show after Q3 2011. Charts courtesy of Asymco.com

HTC's financial troubles started to show after Q3 2011. Charts courtesy of Asymco.com

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posted on 06 Feb 2012, 04:46 15

1. rf1975 (Posts: 259; Member since: 01 Aug 2011)

When its come to built quality, HTC is far better than Samsung, Nokia or Motorola. It is bad to see them going down. We hope they will inovate and be "quitely brilliant".

posted on 06 Feb 2012, 05:29 7

3. sadaivadai (Posts: 156; Member since: 22 Nov 2011)

But in build quality HTC is not greater than Nokia ..

posted on 06 Feb 2012, 09:47 2

9. remixfa (Posts: 14605; Member since: 19 Dec 2008)

nor is it greater than Samsung. people need to get off the plastic vs tin "build quality" and get real. glass breaks and tin dents. samsung phones are dropped and survive. HTC and Apple dont. Thats real world build quality.

posted on 06 Feb 2012, 11:17 4

14. theindianguy (Posts: 90; Member since: 30 Sep 2011)

i am usually on your side of the argument but this time i kinda disagree with you. 1st there is no proof that htc cant survive drops from the same height as that of the gs2, and 2nd is that you like samsung faar too much to hear something against it.


posted on 06 Feb 2012, 12:03 3

17. remixfa (Posts: 14605; Member since: 19 Dec 2008)

truth is in the drop tests. HTC and apple use glass and tin. I WORK in the industry. Do you know what brand I see return the most with cracked screens? HTC. Almost all of samsung's phones use gorilla glass. Almost all of HTC's phones use regular glass. Plastic is better on drops than tin as it helps absorb vibrations more. Ever watch the large SGS2 vs the little iphone4s in a drop test? technically the SGS2 should lose because of its size allowing larger vibrations, but it doesnt. why? build quality and better build materials.

I am a fan of tech. Right now, samsung has it and no one can top them. The only build quality i care about is real life durability, not some preconcieved notions about the "higher quality" of glass and aluminum over plastic. Guess what, more than likely your covering that aluminum with a plastic case anyways... so it makes no difference.

I'm accident prone and I have kids. I'll take samsungs "build quality" over the others any day, as my SGS has proven time and time again that it is the superior device.

posted on 06 Feb 2012, 13:06 1

21. systamatics (Posts: 63; Member since: 16 Nov 2011)

Lol!! HTC never used glass for any of their phones!

posted on 06 Feb 2012, 15:39

22. ojdidit84 (Posts: 458; Member since: 16 Jul 2011)

You see remixfa, at times you make some good points and I'm right there with you, and then you go and throw out baseless drivvle that you've obviously made up off of the top of your head and turn into Taco winding up your Samsung fanboy mill making fake claims to try and make your point stick.


All HTC (albeit mostly the same phones under different carriers under different names) using Gorilla Glass.

You work for T-mobile and see roughly a quarter of the issues that are dealt with by consumers that come into YOUR place of work.

Those things aside, I agree that people are confused about what "premium materials" are. Sure metal and glass are nice, but do people really expect a metal phone to be more durable and absorb more impacts than plastic? Take a look at the number of cracked iPhones you see compared to a Samsung, HTC or Motorola phone. Don't see that many do you. Samsung did "platicky" right...

posted on 06 Feb 2012, 16:25

24. remixfa (Posts: 14605; Member since: 19 Dec 2008)

if it wasn't from the corning site I wouldn't believe it. the king of cracked screens is HTC. I see more HTC screens cracked than any other by far... and for the last year tye top sales have all been samsung sgs1 and sgs2 devices. don't be foolish enough to think that my knowledge base ends at my store.

if its not the type of glass that's different then its the thickness or how HTC is putting their phones together... because those phones break... often. HTC also doesn't advertise corning as a feature on the box or promo materials like Samsung does which is why I didn't think it used it.

ha... as I typed this a customer came in with a freshly cracked sgs2 that he tossed on the parking lot

posted on 07 Feb 2012, 18:04

31. ladyhaly (Posts: 106; Member since: 17 Jan 2011)

Btw, working for T-Mobile doesn't mean a thing here because sales reps usually are more clueless than the rare tech consumers they do have. How many tech reps have persuaded people to buy iPhones "because it's the best phone out there"? How many tech reps even understand the pros and cons between Symbian, Android, iOS, and Windows Phone 7? Even webOS or Bada?

You don't even know the simple fact that HTC uses Corning Gorilla Glass. They have been doing it for years. YEARS. And you mean to tell me that I, a female nurse working my ass off taking care of patients 48 hours a week and not working for a carrier or any other gadget shop, knows that HTC, Samsung, Apple, Motorola, Nokia, and even Sony Ericsson all use Gorilla Glass while you who works for T-Mobile doesn't?


By the way... Is it me, or have I seen you from DotaPortal Forum before? Don't you just miss being bashed around by Kaizen?

posted on 06 Feb 2012, 16:28 3

25. JEEPOFFROADV8 (Posts: 36; Member since: 01 Apr 2009)

you sir are a idiot! lol i have owned and returned 2 samsung gs2's and they are cheap, sorry i know that hurts!! but its there gps issues that still plague there so called high end phones. And its funny how there phones copy the iphone in design and software.

posted on 06 Feb 2012, 17:40

28. blaze456 (Posts: 51; Member since: 06 Oct 2010)

you are right alot of my friends with htc and apple phones screens are broken from falls..im guessing metal and glass on a phone dont go good together

posted on 07 Feb 2012, 17:56

30. ladyhaly (Posts: 106; Member since: 17 Jan 2011)

Wrong. HTC uses Gorilla Glass. Corning Gorilla Glass. Would you like me to pull up the Corning Gorilla Glass stating which HTC devices have Gorilla Glass in it?

Get your facts straight. You said so many things and yet managed to look stupid both at the same time.

posted on 06 Feb 2012, 05:09 5

2. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)

HTC is releasing way to many of the same phone. It needs to slow down and release quality products with support for more than a couple months.

posted on 06 Feb 2012, 05:39 2

4. digitalw (Posts: 69; Member since: 20 Dec 2011)

yestaurday i droped y brother phones, HTC Wildfire S and Nokia N8. When they droped on the stairs and take their "jurney".. on the end, the nokia was alive and there was nothing except one scratch on the back cover. The HTC had broken (plastic) parts :( If that would be Samsung and droped from that hight, i shoud buy a new phone.. i was lucky ;)

posted on 06 Feb 2012, 07:42 2

6. Firedrops (Posts: 249; Member since: 06 Sep 2011)

The Wildfire S is a budget phone, so it's a given that they will have to reduce production costs as much as they can, in this case even to the case material itself. The N8 was released as a symbian flagship of its time. You're like comparing a Toyota to a BMW here.

posted on 06 Feb 2012, 09:49 1

10. remixfa (Posts: 14605; Member since: 19 Dec 2008)

that makes no sense what so ever. the samsung would still be alive. I fling my SGS1 around the store all the time to prove its build quality and have never replaced it since the day it came out. that HTC Wildfire is the biggest POS on the market and its made out of cheap plastic and a horrid build quality. I absolutely refused to sell that phone while it was in store.

posted on 06 Feb 2012, 11:53 3

15. ngo2dd (Posts: 896; Member since: 08 Jul 2011)

Ya and my friends Naxus S has a crack screen from a drop. You out of all people should know that it is the angle of the drop that has more to do with it. I drop my 3D on a parking lot group and nothing happen to it. So much for your Samsung build quality. We all know your a samsung fan boy to keep it to yourself

posted on 06 Feb 2012, 12:04 1

18. remixfa (Posts: 14605; Member since: 19 Dec 2008)

i absolutely will not. you can shove that comment where it counts. thanks.

did i say that samungs DONT crack? find that statement somewhere please. they are however much less likey to crack than an HTC because of the difference in build. preconcieved vs actual quality.

posted on 06 Feb 2012, 12:53 1

20. jimeliz (Posts: 2; Member since: 03 Feb 2012)

I'll side with remixfa here.I work for a phone carrier's warranty department and I never had an issue with Samsung phones breaking physically(cracks,dents,etc.).

posted on 07 Feb 2012, 18:19 1

32. ladyhaly (Posts: 106; Member since: 17 Jan 2011)

So if the plastic is on HTC's devices, it's "cheap" but if it's on a Samsung it's "premium"? I'm sensing something biased here and the answer is Y-O-U.

posted on 07 Feb 2012, 18:21

33. ladyhaly (Posts: 106; Member since: 17 Jan 2011)

"I absolutely refused to sell that phone while it was in store."

-ROFLMAO. Trying to look cool, are we? It's unfortunate that I know you from long ago and how stupid your arguments were (and still are).

posted on 06 Feb 2012, 06:59 3

5. DerekLui (Posts: 3; Member since: 12 Nov 2011)

Hope that HTC can ride out this storm, and pass Apple and Samsung to become a quietly brilliant company.

posted on 06 Feb 2012, 08:15 1

7. andro. (Posts: 1999; Member since: 16 Sep 2011)

Htc had a great 2010 but its phones all pretty much looked the exact same in 2011 only just with different screen sizes and names. Some 2011 phones were minimal upgrades from 2010 phones like say the desire to the desire s. Also sense ui has not changed in a few years and has grown a bit stagnant. If htc is to succeed this year they need to up their game considerable and bring innovation back

posted on 06 Feb 2012, 09:02 1

8. ryq24 (Posts: 772; Member since: 17 Oct 2011)

htc phones are too expensive and they concentrate too much only mid to high end phone. they should follow nokia and samsung which have phone for all category. nokia is still surviving because of their mid to low end phone while samsung is doing very well coz they have phones for every class from the super expensive galaxy note and s2 to their cheapest champ.

posted on 06 Feb 2012, 17:39

27. blaze456 (Posts: 51; Member since: 06 Oct 2010)

eexactly so true..look at the metro pcs phones many of them are samsung feature phones

posted on 06 Feb 2012, 09:51 3

11. remixfa (Posts: 14605; Member since: 19 Dec 2008)

HTC flooded their own market with too much look-a-like crap. They didnt keep up with specs which is what nerds want, and they kept rereleasing the same phone with a very minor bump in specs (sensation-amaze), which pisses off their customers. They took what was once a very nice design and made it so common that no one cares any more.

posted on 06 Feb 2012, 10:15

12. ojdidit84 (Posts: 458; Member since: 16 Jul 2011)

^ This

posted on 06 Feb 2012, 11:58 2

16. ngo2dd (Posts: 896; Member since: 08 Jul 2011)

And samung don't flood the market with look a like? The biggest reason why samsung is doing so well is because they release in all of the market. They release all kind of phone not just their top of the line phone. All of the galaxy line look the same. Look at the Note it just look like a bigger SGS2 which look like SGS. Samsung was alway a top 5 phone maker. The keyword phone maker not samsung maker.

posted on 06 Feb 2012, 12:16 1

19. remixfa (Posts: 14605; Member since: 19 Dec 2008)

your missing the point.. again.

Samsung has 2 major US releases last year. The SGS2 and the Nexus.

Now, name all of the HTC "top end" releases of 2011 please.

rezound, vivid, evo 4g design, sensation, sensation xl, sensation XE, amaze, evo 3d, incredible 2, incredible S,

im not counting the mid/lower end phones for either one or WP7 models.

And other than the 3d cameras on the Evo3d, what are the major differences between those phones? almost all of them run the same snapdragon S3 set up, ram set up, screen and OS set up, with minor variations in screen size and clock speed.
THAT was HTCs problem. They over populated the market with their devices. Instead of turning water in to wine, they turned wine into water. They all looked and acted exactly the same, and not one of them was as powerful as the nexus or galaxyS2. Its not fanboy, its FACTS.

People want the iphone because its "exclusive" and "one of a kind". It would lose a lot of its luster if apple was dropping a new iphone every other month. Thats how you take Tiffanys and make it Walmart jewelry.

posted on 06 Feb 2012, 15:59 1

23. ngo2dd (Posts: 896; Member since: 08 Jul 2011)

They have two release with 4 different carrie. All the HTC you are only one carries per phone byside the sensation on t-mobile. The incredible 2 and S are the same phone for different region. Evo 4g design is mid/range. Rezound VZW, ViVid ATT, Sensation T-mobile. VZW has 2 or 3. HTC same with ATT. Sprint has 1 highend and that is it.
Tell me how many different samsung phone are in each carrier?
Hell Samsung has the skyrocket and the SGS2 same phone different radio.

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