Android Central

HTC has announced its unaudited second quarter financial results this morning, showing earnings in line with its previous Q2 earnings guidance, which had been revised down. In stark contrast to Samsung's record profits, From March to June, HTC generated revenues of NT$91.0 billion (~$3.04 billion), while net income after tax was NT$7.4 billion (~$247 million). This represents a 57.8 percent fall from the second quarter of 2011, during which HTC raked in a net income of NT$17.52 billion (~$586 million).

HTC's had a rough time financially over the past six months, due to strong smartphone competition from the likes of Samsung and Apple. In its earlier revenue guidance, the manufacturer blamed the lower-than-expected profits on lackluster European sales, as well as trouble getting some HTC One phones past customs in the U.S.

 
There are 34 comments

jcastag says:

Again HTC. When will you learn your lesson and give customers what they want.

Whyzor says:

HTC needs to:

1) Allow FLEXIBILITY by including SDcard slot and removable battery. Most people put phones in cases anyway, so the naked sleekness is lost.

2) Use cheaper but still strong materials like Samsung, it's the internals that count, it's not some high-end watch accessory. The aluminum unibody design also makes signals worse, and slippery, and chipping problems if the manufacturing process isn't perfect.

3) Trim down the expensive, labor-intensive Sense overlay, let Android be Android. Everyone will be happy.

greatgoogly says:

Keep making your flagship phones w/o SD cards and removable batteries and continue to see your profits erode. I and many others will not buy or recommend to friends to buy any phone that has a non user replaceable battery.

eadred says:

I beg to differ. SD cards are slow and useless. Non removable battery allow for much better design builds and higher quality standards. The opposite would serve a small amount of old-fashioned geeks who refuse to evolve, not the majority. HTC is regarding design miles ahead of Samsung and HTC one x international has pretty nice battery life anyway. Get yourself a portable loadable charger, problem solved.
I don't understand why HTC isn't more successful considering the awesome phones they make.
The only perfectly stupid thing about htc is their policy regarding bootloader and s-off. Samsung is more open-minded about this. In my opinion, this costs htc a lot of lost sales. I don't understand them being so stubborn about it.

jcastag says:

Do you think that 90 percent of buyers care about locked bootloaders or s-Off?

Immolate says:

In other words, HTC is making better phones, but the buying public is too stupid to understand. Stupid, stupid buyers who buy things for their own, wrong reasons. Someone should tell them what to buy and back it up with the force of law.

nyc_rock says:

So user replaceable battery's and memory expansion is for geeks while unlocked bootloaders and hacking are mainstream?

HTC puts form over function. Big mistake IMHO.

randyw says:

+1

coronaboy10 says:

Shouldve brought the One x to Tmobile too. Release the devices on ALL carriers not just the big 3. And stop giving Sense4 priority in multitasking. You really ruined it.Sense doesnt need to be such a resource hog. Its way past time you trimmed it down for real and not just in looks.If you're going to make a battery non removable, then make it a large enough battery so that its worth the sacrifice. Contrary to you believe, HTC not everyone wants a super thin device that wont last. Listen to the real consumers, the ones that actually buy your devices and not some biased focus group to tell you what people really want in a high end device.

I actually did buy the One X and haven't regretted I for one second.

Zammo76 says:

They definately messed up not putting an SD card slot or removable battery on the One X I'd have bought one if it had these, instead I held out for the S3.

CeluGeek says:

I'm so happy HTC is getting what they deserve!

1. No SD cards... Who needs them? Everybody has access to truly unlimited data so they can stream every song, video and TV episode they want to play, right>?

2. Removable battery? What for? People are too stupid to know how to change a battery. Plus it's easier to buy a new phone than to send your old one for service to have the battery replaced so cha-ching!

3. ICS look an feel? Yuck! The stock Android UI is not meant to be seen by end users; it's a placeholder for OEM's to put the only good UI's, custom skins.

4. Visually-impaired users? Who gives a crap about them?! Let's ditch physical keyboards and make our state of the art Sense OS completely inaccessible to Android's accessibility API's.

Yeah, HTC: stupid decisions lead to huge profits. Keep it going!

calvin35 says:

You left out that they should stop putting out high end phones that look better than last year's models but actually perform worse. HTC One X vs any high end android phone from last year.

Oh look, everyone wants phones with better batteries, SD card slots and wonders why.

wmurch3 says:

Do you guys think you are the "real consumers"? HTC just can't compete with the likes of Samsung and Apple in the marketing world. This is why Palm failed to gain traction and while I like the HTC One X ads I admire the way Samsung is blatantly going after Apple. It's a ballsy move that seems to be working in their favor.

arsaw says:

What ever new features (e.g. non removable / no sd card) HTC offered, consumers response is clearly depicted in its second quarter financial report. Is just not good enough to create the impact to make people switch.

skyboxer says:

The best marketing is giving the end user what they want. It's true that only the uber geek cares about unlocking and rooting but they have less geeky friends that ask their advice over a salesman. They ask questions about storage and battery life. They like what they see on the uber geek's phone.
I loved my dinc2, but knew it would be a relative lifetime before it would be a fully functional ICS device. HTC is just not going to hand over the tools needed to make it work.
I'm sad to see them slipping because my dinc2 is a rock solid device, but this is 100% their own doing.

breugel says:

Maybe people are pissed like me... I am a rezound owner and i like the phone but were we not promised a ICS upgrade in 1st quarter of 2012???

Go Android! says:

When will people realize that the majority of people don't care about sd card slots, a removable battery, and locked bootloaders? ...The most popular phone has all of those features.

Although I chose the Galaxy Nexus over the Evo LTE due to the locked bootloder, and I love not dealing with an sd card.

nyc_rock says:

Dealing with an SD card? You mean the physical act of putting it in when you first get your phone? Oh the horror!!

Hey, HTC can do what they want and they can suffer the results. But to release a flagship device on ATT with only 9.7 gig's of usable space is just stupid.

randyw says:

+1

Go Android! says:

Actually, it's usually already installed when you get the phone. I don't want to have to deal with sd card storage and internal storage. I like it all together.

shyamnat says:

Just make one frigging phone with the best specs (like the iPhone) and ensure that the stock android ROM works perfectly well on the phone and see your sales skyrocket. Once my contract with Verizon ends, I will only consider the Nexus series phone. So lame to see the new phones released with ICS and wait for 8-10 months for the next update.

ranger67 says:

I'm with most of the users here. If HTC re-implements SD and removable battery support, I'll be back in their camp. As it is now, my next upgrade from my HTC Vivid is to a galaxy s III.

To the user stating that SD is slow, the SDXC spec allows for some exceptional speeds. You can't blame most of the retailers not wanting to embrace the new spec with it's reliance on exFAT and the M$ licensing that comes with it. Fortunately, the hardware for HC and XC is the same and we have the ability to format the 64GB+ cards in any other FS format we want on the current phones which support SDHC.

To all phone manufacturers, flexibility is the name of the game. Allow us to decide by supporting multiple filesystems. Android has a Linux heart and can easily support an ext2 derivative as well as FAT32. That way users looking for the very best speeds can embrace ext2, while those looking for the greatest compatibility can use FAT32.

And for those asking why I want an SD card, it is not to unlock the phone or try to get around anyone. I maintain all my content (yes all of my microsd 32gb are full) on the SD card. When I move phones, I want to remove my card and place it in the new phone. This solves multiple problems. 1) the time involved to xfer all 32gb to a desktop and then back to a new phone over usb 2.0 is very inconvenient 2) I often give my old phones to friends and family. I don't want my music/audiobooks/video/pictures to end up on a bittorrent site for personal and legal reasons 3) I can, at my discretion, remove the card and easily transfer file/s to another computer or device such as my tablet, again without an in between hop to a computer via a usb2.0 cable. My tablet supports microsd as well as both my laptop and desktop and can transfer data substantially faster than a usb2.0 connected to the phone.

Anyway, the masses may not be concerned with these things, but I am. I don't believe we should be punished because the masses may not use these options or for the industries desire to control how/where we access our own content.

Sorry, stepping off of soapbox now. ;)

delta7 says:

People are sheep and once they buy a phone they usually continue on buying that same model... so people who bought the gs2 will probably get the gs3.

Non removable battery was just dumb on HTC's part, I understand it leads to better designs but the public probably only trust apple with that. I don't know how moto's are selling at all so forgive me if I'm off...

The evo is just plain ugly, too tall and lean, looks stupid to me and sense is just still too heavy.

The gs3 is very fast, hands down... people will buy this over the one x or evo in a heartbeat due to speed.. also samsung seems to be going the less difficult route and trying to dumb it down to appeal to the user...

HTC needs to go back to a removable battery and try to do something with sense to make it lighter and focus on software like samsung is doing...

Also make more phones in white avialible on day 1...

eadred says:

Why everyone is moaning about SD card is beyond me. Internal memory is so much better, there is no point at keeping sd, except if you want to live in the past.
Non-removable battery is kind of a trade-off: it allowed to design much nicer phone, but it sure sucks when your battery is worn-out. I'd say I am glad with the choice htc made here. The phone looks fantastic, whereas samsung looks like cheap sh.t. You can't have it all.
You people should remember that you are a minority. Zillions of iPhone user don't care about sd card and removable battery. The same is valid for most of android phone buyers.
What makes the difference is probably the marketing and reputation. HTC killed their reputation over the last two years by releasing a new handset every two months and everytime only half functional. It takes some time to restore the confidence. Also Samsung is hammering ads everywhere, it sure works somehow, just like apple.
On my side I am all admiration for the exceptional build quality of htc and very satisfied with the courageous design choice they made. Even on the geek side, not everybody finds sd card essential. Some are able to evolve, other not. On the long run, htc has the right strategy and it will pay off sooner or later, provided the keep the highest quality standards and improve a bit customer service.

nyc_rock says:

Judging by their financial results, I would say that you are the one who is in the minority.
Apple offers 16, 32 and 64gb versions of the Iphone so memory is not an issue. HTC is competing against other producers of Android devices. If you want an Iphone, which millions do, you only have one choice. So you had to deal with the non removable battery.

Glad you're happy though.

Habiib says:

I see one or two last ditched hopes of HTC reversing its position. Off the bat Samsung and Apple have more marketing and hype behind their products.

They can hope to get a chance to develop the new Nexus. I don't think that's likely because I think I read where they could have done the Nexus tablet but wanted too much control over a certain aspect of its development.

Alternatively deliver a phone this year that has SEVERAL hardware specs and technologies that no other competitor can match and really emphasize it in their marketing. Hopefully such a device would have an impact like the OG EVO.

Other than that, I don't see too many people from the general public wanting to purchase an HTC device, especially if that person has the "I want what's popular, what wins comparison test, or what everyone else has" viewpoint.

Crezo says:

This really surprises me as HTC have made some of the best designed and made devices for a long time, and compared to the cheap and tacky plastic Shite Samsung put out I would have thought they would be doing well.

The one x was so good after recent playing with it I switched to android from iphone which I've been using since the first one came out and have been jail broken with various winter board themes. But the customisation without jailbraking/rooting or whatever you call it on Android is great.

Personally I love sense once you tweak it to how you want it, and I don't get why everyone moans about it, and it's easy enough to remove and go back to the boring (but still considerably more exciting than ios's).Home screens.

The one x is the first Android phone that is actually sexy and looks like someone actually bothered to put some thought into the product design side of things rather than just making another generic output cheap case.

I run an mobile development business so we have had all sorts of devices to play with over the years and I've never had an android device that was well designed or made other than some of the htcs

Hope they get the business sorted out and keep making good products.

Personally sd cards and replaceable batteries seem pointless, as most people replace their phones every day ouple of years, so you're never likely to NEED to change it. But seeing as those two points are the main criticism maybe they should do this on the next models... Just a shame this will kill beautiful smooth lines and solid feel of the phone.

Crezo says:

Scuse the typelexia above there, still getting used to the keyboard ;)

tyoung58 says:

I have owned the original EVO and thoroughly enjoyed it. I was with crap AT&T getting raped $200 a month for 2 iPhones. Went to Sprint because far more cost effective. When my contract was up I thought about going back to the iPhone since Sprint now carries these. I just got so used to the nice size screen of the original EVO. The HTC EVO 4G LTE was just being released and I we.t & purchased it because it is so thin & light but solid feel. Unfortunately their was nobody that made a good holster for it when it first came out so I was carrying it in my pocket which just did not work for me. So Best But where I bought it let me trade it in for an iPhone 4S for no charge, straight trade. Don't get me wrong, the iPhone 4S is a solid phone, but the screen is just so small!. Then I noticed suppliers where starting to make nice holster cases for the HTC EVO now. So seeing as I was still within my 30 days of original purchase I sheepishly went back to Best Buy & asked if I could go back to the HTC. THEY WERE GREAT AND SAID NO PROBLEM! Doing a direct comparison between these phone is a no brained for me. I LOVE the screen. The 2000 mah battery last all day plus some. I bought the Qmadix cover with holster and it is great, very slim and stylish. It actually has the micro SD card slot. I am very happy with HTC on both the original EVO and the 2nd generation. These are great phones and Android OS has come a long way. Sense to me is the most user friendly overlay on Android. The Samsung touchwiz is junk compared to Sense. I will continue to buy HTC phones as long as they are available and keep the high quality.

Caliking21 says:

My only problem is that my Evo 3d hasn't gotten ICS. This is my 1st android phone and it is ok. I wish it would get updated even if it is not a full update because it won't get sense 4.0. As a customer I feel that's bull my phone is a just a year old but they don't even care about it. Both nexus phones on sprint have gotten the update to ICS makes me think that HTC doesn't care about their customers. I seriously doubt I will be a repeat customer.

BlueCarbon says:

I can't stand any company that releases any device and then doesn't release updates. And the only way to get an update is to buy a newer model.

jerbzz21 says:

Brace themselves from bankruptcy!