Android Central

HTC reported its audited second quarter earnings today, releasing figures in line with the earlier unaudited results reported last month. From March to June, the smartphone maker generated revenues of NT$91.04 billion (~$3.04 billion), while net income after tax was NT$7.4 billion (~$247 million), with a gross margin of 27.01 percent and operating margin of 9 percent.

Looking ahead, HTC expects lower revenues, profits and operating margins from July to September. The manufacturer expects revenues to reach somewhere between NT$70 to 80 billion (~$2.33-2.67 billion), with an expected gross margin of around 25% percent and operating margin of 7 percent. If accurate, such a figure would represent a significant year-on-year fall from the NT$135.82 billion (~$4.53 billion) reported at the height of HTC's success in Q3 2011.

Despite the launch of the well-received HTC One series earlier in the year, 2012 has been an uneasy year for HTC, with profits declining amid strong competition from Samsung and Apple in the smartphone market. HTC recently sold back half of its share of headphone maker Beats Audio, less than a year after acquiring its stake in the company, following the failure of Beats to emerge as a differentiator for a HTC's smartphones. And late last month the manufacturer pulled out of South Korea after its market share in the country reportedly dipped below a single percentage point.

Despite these difficulties, HTC continues to hold a significant chunk of market share in the U.S. -- around 14 percent, according to recent Nielsen numbers.

 

Reader comments

HTC reports Q2 2012 financial results, expects lower Q3 revenues

21 Comments

this is what happens when you fail to innovate and rely on gimmicks.

do you hear me Chou??????????????????????

and the one x came with a locked boot loader and tons of software bugs worse than the gnex bugs. Plus they just released ICS for the rezound on verizon, verizon being a bitch and dragging its feet with every update to every device, taking 5-6 months of "testing" doesnt help oems. HTC finally came out with their first great phone the one x, and then didn't put the quad core in the US variants. Get your sh@t together htc

htc is either running or sleeping, i mean last year they released like 13-15 high end androids and now the onex is the only one.

That's because they decided to release quality products over mass quantity. And the devices they released last year were all variations of the same device. Namely most of their high ends were based off the Sensation and the Desire series with a few functions differing from each. This year to get a brand device(like Samsung's Galaxy series) they released the One series.They're not sleeping or running. They're trying to release better devices with fewer releases of the variations. I doubt they'll stick completely with that since it doesn't seem to be working.

Yes but they made one HUGE mistake: they released completely different variations depending on the carrier instead of releasing each variation on every carrier. Take the Galaxy S III for example; no matter what carrier you are on, like the iPhone if you want it you choose it on your carrier. With the One series unless you have AT&T or Sprint you don't get the full monty; you either get a smaller, lower resolution screen in the One S, or a much smaller lower res screen and a gimped camera with the Incredible on Verizon. Choosing to not give Verizon the full One X at least was a huge mistake, as they are just as big as AT&T and could have really helped HTC. Oh well, maybe next time!

Time will tell if that's true. I still think it was stupid to not release something on Verizon, I don't see why they couldn't negotiate anything.

the problem with HTC is they thought they was big shot when Samsung stepped up so demands are a big higher now that you have a second place phone(samsung galaxy series) to compete with. It use to be just anyone taking second place, but now that the galaxy has made a big name for samsung this year HTC hasn't did anything to counter that. I mean the HTC EVO LTE was the wooo of the week for sprint but it really didn't have any outstanding features... I felt the HTC EVO LTE should of had a better look and one gimmick that other phones don't have. And like everyone said they released the "one" series but not on every carrier, well anywho they release the same phone just under a different name. Kind of confusing on HTCs end.

I'm sorry, but you have slightly offended this proud owner of an EVO LTE. To say that the EVO doesn't have any outstanding features is completely wrong. Besides everything the One X has (brilliant screen and camera, Beats Audio, etc.), it also features expandable storage, a physical camera button, and a 2.5-position kickstand (2.5 because portrait is quite the balancing act). I use ALL of these features and enjoy ALL of them.

Also, you must remember that Android and GSM networks are worldwide. The US is a large, lucrative smartphone market, but it is by no means the only one that matters.

I love my htc I still say they need a pre rooted stock phone well with no warrenty but on a carrier (modders dream phone) they also made a huge mistake no expandinle storage I LIVE ON SD CARDS I FILLED A 18 GIG IN 3 DAYS!!! Drop box or not wtf and yes tuere needs to be a 1 phone design across all carriers also a modders dream bc it makes it a hell of a lot easier to root

I absolutely love my One X, and as much as it pains me to say it, I think SD expansion was a major selling point.

And in the US, Samsung went with 2GB of RAM which is a big selling point as well

One idea would be to stop putting such a backwards pig of an overlay on top of stock Android. I love HTCs hardware, I previously owned a G1 and a G2, but (like many) I hate Sense. My wife has a Sensation, great hardware, but to me Sense is almost unusable, it just feels like its in the way all the time. I suppose I could see that if Sense was all you knew then it wouldn't annoy you nearly as much, but coming from stock (or only slight modified) Android, its just obnoxious. I really love my S3, TouchWiz isn't ideal, but it's at least more consistent.

I'm gonna have disagree there... Sense 4.0 has a much more unified theme in comparison to the new version of Touch Wiz. Also, I found Touch Wiz to be a little convoluted when trying to navigate settings and preferences. Of coures we can both agree that stock android would be ideal.

My bad, in my post when I said "consistent," I meant "consistent with stock Android". I will agree that Sense is very consistent within itself, and I'll also agree that within TouchWiz consistency isn't its strong point. I'll also say that Sense looks nice, I just can't stand to use it :-)

I must be the only one who likes sense. It's actually the reason I've stuck with them since the old wm days. The lock screen and widgets I love. Motoblur and tw are cartoonish IMHO. I could use them but prefer sense or stock. I contemplated the s3 because sense is a resource hog. That's the only problem I have with it. In the end I got the Evo 4G LTE and have no complaints.

You're not the only one. As a manufacturer UI, Sense is the best in my mind as well. You're right about Motoblur and TW, except that Touchwiz is trying so hard to become the Sammy version of the iOS overlay. Does Sense hog resources? Sure, as most of them do, but at least it is a unified theme across the entire device and in my experience everything works well together. I know people here talk about a dislike for it and I can understand it, but if you want stock then root your device or get a Nexus device. I don't think the average person cares much about performance and the UI. It seems most people like the iDroid UI that Touchwiz tries to be because they enjoy the openness of Android without the lock-down they get from Apple.

Have you used a Moto phone with ICS? Motoblur doesn't really exist anymore. It's basically stock with a few extra apps.