HTC reconsidering S3 purchase after lost lawsuit, lowers Q4 estimate

HTC reconsidering S3 purchase after lost lawsuit, lowers Q4 estimate
You’ve probably already heard about S3 Graphics surprisingly losing a legal battle with Apple leaving HTC puzzled about what it has to do with the already announced acquisition of the company. The Taiwanese however didn’t stay confused for too long and are now saying that they will re-evaluate the deal, so it could be cancelled. 

Earlier, HTC said that it will appeal the ruling jointly with S3, but it seems that it has lost its most important arguments. In either case, it seems that this acquisition was mostly planned to fortify HTC’s patent stands. The Taiwanese phone maker was ready to spend $300 million on the S3 Graphics deal.

At the same time, the company has cut its sales forecast for the last quarter of the year after several record quarters.

“Due to global macroeconomic downturn and market competition, the assumptions of 2011 Q4 financial forecast provided earlier are no longer applicable,” HTC said.

The revised estimate puts revenues at around $3.4 billion or NT$104 billion, down from an initial forecast for between NT$125 billion to NT$135 billion. The market competition mentioned in the report possibly refers to Samsung which offers handsets in all price categories while HTC has largely neglected the low and partially mid-end. But it’s also worth mentioning that Apple is recording very strong initial sales of the iPhone 4S.

source: Blooomberg

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35 Comments

1. bayhuy

Posts: 320; Member since: Jun 23, 2011

Every judge has an iPhone or iPad...well known fact.

2. lubba

Posts: 1313; Member since: Jan 17, 2011

I'll agree to that.

8. rf1975

Posts: 264; Member since: Aug 01, 2011

We know that HTC will lose this patent war. But these are just dramas. The thuth is that all companies copy each other when it comes to manufacturing. http://www.roughlydrafted.com/2011/09/30/amd-claims-ownership-of-s3-graphics-patents-that-htc-aimed-at-apple/

13. LewsTherin006

Posts: 140; Member since: Nov 18, 2011

it is known.

3. lubba

Posts: 1313; Member since: Jan 17, 2011

They may have better chance tying knot with MS.

4. gallitoking

Posts: 4721; Member since: May 17, 2011

so does every hospital... airlines, department stores... your point is?..... and you know what.. Obama also has one.. ok bad example...lol... but you get my message...

6. snowgator

Posts: 3621; Member since: Jan 19, 2011

Okay Galli... that is kinda funny!! :-D

16. remixfa

Posts: 14605; Member since: Dec 19, 2008

really.. i didnt see a single ipad in my hospital. however many are using ANDROID tablets. Smaller, easier to make apps for, and they do more. :)

23. gallitoking

Posts: 4721; Member since: May 17, 2011

35. taco50

Posts: 5506; Member since: Oct 08, 2009

Gallito posting facts confuses remix. It interferes with his talk track.

25. faisal8708

Posts: 104; Member since: Nov 15, 2011

Yea they are using Android tablets thts how they sold 1.2m of those so many hahahahahaha Stupid dumba$$ Fandroids

14. LewsTherin006

Posts: 140; Member since: Nov 18, 2011

why would this be a bad thing for HTC? They now have a in house graphic company, along with beats audio. This will help keep production cost down.

33. snowgator

Posts: 3621; Member since: Jan 19, 2011

Huh. Never been moderated before. Going back to put my nose in the Mobile corner.

9. Sniggly

Posts: 7305; Member since: Dec 05, 2009

If there's one thing I can't stand, it's bigotry. You deserve to be punched really frickin' hard in the gonads.

10. taco50

Posts: 5506; Member since: Oct 08, 2009

Hahahaa

12. LewsTherin006

Posts: 140; Member since: Nov 18, 2011

Sniggly PUNCH! *punches in balls*

27. ladyhaly

Posts: 106; Member since: Jan 17, 2011

I second the motion. But let's have a girl do it. So it hurts freaking more.

17. remixfa

Posts: 14605; Member since: Dec 19, 2008

what idiot trolls thumbed up this guys racist and completely off based comments? you guys really are idiots.

31. systamatics

Posts: 63; Member since: Nov 16, 2011

its 2012 and stupid racists are still alive!! and what the f**k is wrong with phone arena keeping your post here , IDIOT!

11. taco50

Posts: 5506; Member since: Oct 08, 2009

HTC made a desperate attempt at patent trolling and ate it big time. Now they have to face up to Apple's legitimate lawsuits Lower sales estimates is called the iPhone 4S effect.

18. iamcc

Posts: 1319; Member since: Oct 07, 2011

The iPhone 4S effect? I thought that was when people bought the same product as last year. I must be confused.

19. remixfa

Posts: 14605; Member since: Dec 19, 2008

lol.. its like groundhog day, but with an iphone. :)

20. taco50

Posts: 5506; Member since: Oct 08, 2009

Keep an eye out

22. networkdood

Posts: 6330; Member since: Mar 31, 2010

LOL, it is, unless you are going from iphone 3GS and lesser models....

21. networkdood

Posts: 6330; Member since: Mar 31, 2010

And, so, what do you get out if? Are you an APPLE employee?

24. taco50

Posts: 5506; Member since: Oct 08, 2009

I get the satisfaction of all the trolls back pedaling and making excuses.

26. networkdood

Posts: 6330; Member since: Mar 31, 2010

Wow, seriously?? Must be a lonely existence for you.

30. ladyhaly

Posts: 106; Member since: Jan 17, 2011

You only see yourself reflected back from other people.

28. BlowJobs

Posts: 25; Member since: Jun 30, 2011

"Apple's legitimate lawsuits" That's a good one.

29. ladyhaly

Posts: 106; Member since: Jan 17, 2011

The iPhone 4S effect? I thought it was another name for "deja vu".

* Some comments have been hidden, because they don't meet the discussions rules.

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