HTC's financial woes continue
posted by Chris P. / Jul 05, 2013, 7:44 AM
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."
Competition from Chinese brand are fierce? I thought HTC itself is also Chinese brand....
posted on Jul 05, 2013, 7:48 AM 7
Posts: 10457; Member since: May 14, 2012
The very first word on the article Wendy...
posted on Jul 05, 2013, 7:51 AM 36
Posts: 162; Member since: Jun 21, 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 Jul 05, 2013, 10:55 AM 0
Posts: 4888; Member since: Apr 15, 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 Jul 05, 2013, 11:42 AM 3
Posts: 6474; Member since: Jan 28, 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 Jul 06, 2013, 3:10 AM 0
Posts: 1515; Member since: Jun 03, 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 Jul 05, 2013, 7:52 AM 9
Posts: 1415; Member since: Sep 29, 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 Jul 05, 2013, 10:04 AM 4
Posts: 10457; Member since: May 14, 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 Jul 05, 2013, 7:54 AM 9
Posts: 440; Member since: May 06, 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 Jul 05, 2013, 8:18 AM 4
Posts: 895; Member since: Jun 10, 2012
where the hell did the 5 Million sold? or should I say ship and stack at store
posted on Jul 05, 2013, 8:19 AM 0
Posts: 865; Member since: May 11, 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 Jul 05, 2013, 10:00 AM 0
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 Jul 05, 2013, 8:21 AM 2
Posts: 18; Member since: Jul 05, 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 Jul 05, 2013, 8:38 AM 2
Posts: 165; Member since: Aug 26, 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 Jul 05, 2013, 8:40 AM 6
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