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

Related phones

One (M8)
  • Display 5.0 inches
    1920 x 1080 pixels
  • Camera 4 MP (Dual camera)
    5 MP front
  • Hardware Qualcomm Snapdragon 801, 2GB RAM
  • Storage 32GB, microSDXC
  • Battery 2600 mAh
  • OS Android 6.0 Marshmallow
    HTC Sense UI



40. gaara6775

Posts: 738; Member since: May 20, 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.

35. snowgator

Posts: 3630; Member since: Jan 19, 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...

31. cncrim

Posts: 1590; Member since: Aug 15, 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.

28. Ghost04

Posts: 522; Member since: May 03, 2014

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

27. GreekGeek

Posts: 1276; Member since: Mar 22, 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

23. Taters

Posts: 6474; Member since: Jan 28, 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.

33. Furbal unregistered

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

39. jojon

Posts: 438; Member since: Feb 11, 2014

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

18. ryq24

Posts: 876; Member since: Oct 17, 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.

17. Mechanized

Posts: 13; Member since: May 31, 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.

13. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 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.

7. ajac09

Posts: 1482; Member since: Sep 30, 2009

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

9. PapaSmurf

Posts: 10457; Member since: May 14, 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.

11. nohatenofanboy

Posts: 515; Member since: Jul 15, 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.

16. Muayyad

Posts: 240; Member since: Oct 05, 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.

19. nohatenofanboy

Posts: 515; Member since: Jul 15, 2014

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

42. dmakun

Posts: 382; Member since: Jun 06, 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.

5. YodhaMali

Posts: 49; Member since: Jan 05, 2013

And its crappy Ultrapixel camera to blame in turn.

8. PapaSmurf

Posts: 10457; Member since: May 14, 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.

10. robert26101

Posts: 107; Member since: Mar 21, 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.

34. snowgator

Posts: 3630; Member since: Jan 19, 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?

1. XperiaFanZone

Posts: 2282; Member since: Sep 21, 2012

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

2. CyberFalcon

Posts: 223; Member since: Apr 17, 2014

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

4. CyberFalcon

Posts: 223; Member since: Apr 17, 2014

* HAAC mic and the assertive display too

12. taz89

Posts: 2014; Member since: May 03, 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.

26. ECPirate37

Posts: 359; Member since: Jul 14, 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. :-/

15. Liveitup

Posts: 1798; Member since: Jan 07, 2014

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

25. LetsBeHonest

Posts: 1548; Member since: Jun 04, 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.

41. dmakun

Posts: 382; Member since: Jun 06, 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.

37. sgodsell

Posts: 7689; Member since: Mar 16, 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.

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