Android Central

Despite the launch of major new devices like the Droid DNA, One X+ and Windows Phone 8X, HTC's revenues and profits fell once again in the final quarter of 2012. Today the company reported fourth-quarter revenues of NT$60 billion, or $2.03 billion U.S. (down from NT$70.2 billion in Q3), with gross margin of 23% and operating margin of 1% (down from 25% and 7% respectively).  Net profit and EPS (earnings per share) also fell, the former from NT$3.9 billion to NT$1 billion, and the latter from NT$4.7 to NT$1.21.

HTC expects things to get worse in the first quarter of 2013, predicting Q1 revenue in the NT$50-60 billion range, with a gross profit margin between 21 and 23% and operating margins between 0.5 and 1.0%.

Despite the grim outlook, HTC CEO Peter Chou is optimistic about the company's prospects in 2013 --

“We continue to focus on the most important element of our business: innovation,” said Peter Chou, CEO of HTC. “Our teams are delivering beautifully designed phones, containing the newest technological advancements. Outstanding products, paired with improvements in our marketing execution and overall readiness give us reason to feel optimistic about the progress we will make in 2013.”

That progress, if it comes, will start with the launch of the company's first major Android phones of the year, rumored to be a 4.7-inch, 1080p device codenamed "M7," and a 4.3-inch 720p phone known as "M4." HTC has scheduled press conferences in London and New York City for Feb. 19, just ahead of Mobile World Congress, and we'll learn more at those events.

Source: HTC

 
There are 35 comments

NickA says:

This is too bad for HTC. I've never had an HTC phone until I got my DNA in December. I love this phone and think it's one of the nicest I've had yet, and I've had a lot.

SoCalBIGmike says:

Ive had HTC phones on & off for years, mainly the old Windows Mobile devices. I just got my DROID DNA and wow, it is a SUPER phone! I love the wireless charging, I use it a lot. The NFC not so much, as there is no Google Wallet support.

I wish the DNA got more support from Android enthusiasts who just wrote it off...

Gekko says:

just as i predicted - more pain. this is what happens when you get lazy and fall asleep at the wheel and keep spitting out the same tired clunky EVO derivatives over and over and over again.

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

MrLadoodle says:

EVO is Sprint, not HTC.

DAS says:

Sprint is the network. The EVO is made by HTC.

mstrblueskys says:

Tired and clunky? The 4G LTE is the nicest phone I have ever owned - and (since I think touchwiz is terrible) the best phone Sprint offers.

JohnJSal says:

+1

npco543 says:

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

No, I'm fairly certain the CEO of HTC isn't reading the Android Central posts of Gekko. God you sound so stupid when you end your posts with that. Please just stop.

TBolt says:

maybe HTC will wake tfu now. their phones have the worst battery life and fewer of the options that most people want (removable batteries, SD Cards, far more than 16GB of internal storage).

i already bought my last HTC and stopped recommending them to users. wake up, HTC!

SoCalBIGmike says:

Honestly, my DROID DNA gets ALL DAY battery life with constant voice use, wi-fi data and Twitter, Facebook, etc. It has surprised me how well the battery lasts. Longer than my old GSIII thats for sure.

NOT trying to start a flame war either. Just saying my observations.

TBolt says:

(double-tapped) (no remove option)

ShahinTr says:

Seriously, what is wrong with Chou? Has he no brain, all HTC have to do is not sell as much, whoever thought that selling more will make you less? HTC have shown it well. HTC, just a few things to do, release less devices, 3-4 high end devices a year and show more support to the product.

Is there a way I could send this directly to Chou? LOL what a CEO.

The consumers are getting wiser everyday...I keep saying we will no longer be fooled by what a paid blogger writes about a phone.....my HTC one X battery is just horrifyingly bad! Its unbelievably how a company can put such battery out there in the market! But during all reviews Phil and his gang will never mention this to potential buyers! Well HTC u can spend billions in advertising but word of mouth will ensure your phones will not sell much if u don't improve on what the consumers have been demanding for: better battery life! Better battery life! Better battery life! Damn how hard can it be?? :-)

MarkSeven says:

“We continue to focus on the most important element of our business: innovation,” said Peter Chou, CEO of HTC. “Our teams are delivering beautifully designed phones, containing the newest technological advancements. Outstanding products, paired with improvements in our marketing execution and overall readiness give us reason to feel optimistic about the progress we will make in 2013.”

Yeah.. None of that matters if everyone can't get the phones u put out. Stop with the damn exclusives. Obviously it's not working!

MazoMark says:

I'm struggling to see what HTC is doing to break this downward trend. I've never owned an HTC phone, but I think their hardware is solid.

They can't complete with marketing $$ that Samsung pours into market. Seems to me they need to focus on particular market segments with high profit margin potential.

Their only other option would be to seek a merger with someone with deep enough pockets to allow them to compete with Samsung in marketing.

littleemp says:

Their hardware is more than solid. The problem lies in their pathetic software offerings and support.

greatgoogly says:

Strike 1: No SD card
Strike 2: Non user replaceable battery
Strike 3: limited availability due to exclusives
You are done HTC, go and sit down on the bench.

Ry says:

Your strike 3 is the only valid one on the list.

NickA says:

Dude, where have you been? In case you haven't noticed...

1. Non-replaceable batteries is the trend now.
2. Same for expandable storage. You make more $$ selling a device with increased storage.
3. Carrier exclusives is where the money is at. You don't like it? Wait a few months to get the phone on the carrier of your choice, or a variation of the same phone.

Get used to it, it's how things are now.

npco543 says:

>1. Non-replaceable batteries is the trend now.
>

Really? Name a Samsung phone with a non-replaceable battery.

>2. Same for expandable storage. You make more $$ selling a
>device with increased storage.>

Really? I see vocal complaints about this on pretty much every phone without an SD card. People still buy phones *in spite* of non-upgradable memory, not because of it.

>3. Carrier exclusives is where the money is at. You don't
>like it? Wait a few months to get the phone on the carrier
>of your choice, or a variation of the same phone.

First, where the money is at? Hmmm, HTC is the largest of the few manufacturers who are pretty much carrier-exclusive only... and they're not seeing any of this money of which you speak. Second, as for just waiting a few months to get the phone on the carrier of one's choice, I've been waiting almost a year, and the One S is still not available on the carrier of my choice. Had it not been exclusive, I'd have bought one in a second. Now, even if it did become available on my carrier (which is certainly never will), I'd still not buy one because it's generations old at this point. Result - lost sales due to carrier exclusivity.

>Get used to it, it's how things are now.
>

Your position has not been proven, and if we are to "get used to it", HTC might as well "get used to" the fact that their path is inexorably leading towards bankruptcy.

MarkSeven says:

+1000000000000000000000000000000000000000

Dutchmasta says:

i would def not buy a phone these days without a battery i can replace myself.

bryanw504 says:

The main thing that keeps killing HTC and will continue to kill them is. EXCLUSIVES. They fail to realize it and until they do they will post losses every quarter.

Take the DNA for example only folks on Verizon could buy it why limit yourself to one network it makes no sense. Apple wised up after their deal with ATT and the iPhone is on almost every major carrier even regional carriers.

Look at Samsung you can go get a GS3 or Note2 just about anywhere. Consumers have shown they will be more loyal to the network not the phone maker.

Chou wise up are you will keep losing market share.

Ry says:

Spot on.

slayerpsp says:

No sd slot only reason i bought the Evo Lte sd slot and great build have had the og Evo 3D Evo but have now moved on to the Galaxy Note 2. Nice phone but the build quality isnt as good as htc with all the plastic on it but the phone has way more support then the Evo lte even though it came out 4 months later

codiusprime says:

SD slots and removable batteries are not what's killing HTC, it's exclusives. To claim otherwise is to ignore one of the, if not the most popular phone out there.

Ry says:

Thank you.

Ry says:

Thank you.

Jack33 says:

It's kind of sad that what was once a great company that gave us the Incredible (albeit poor battery, but so were others at the time), has now been relegated the status of a favorite punching bag for all that is wrong with android. I hope htc comes roaring back with great products in 2013.

Ry says:

Exclusives and small marketing budget are killing HTC.

alc2077 says:

HTC has placed themselves in a position where they are unable to dictate terms of Non-Exclusivity phone releases to carriers i.e HTC phones don't drive as much sales volume. Apple & Samsung are the only 2 phone OEM that have such pull currently and this is solely based on the volume of sales they generate plus HUGE marketing budget they have to partner up with the carriers!
I honestly don't see how HTC will compete in the top tier markets because there are more phone OEM going into that space & offering feature packed devices for less than what HTC would sell their higher-end phones for. Go into the carrier stores & the most recommended android phone is either the S3 or Note2 yet there are tons of other capable android phones being offered by the same carrier.
HTC has lost their momentum & one thing in business is if you ever loose momentum it's an uphill battle which is tough to overcome.

MazoMark says:

I agree with you over lost momentum. Wasn't that long ago they were leading the pack for Android phone sales. Now, they a risking falling into the "other" category on market research reports.

HTC may be forced to merge with another manufacturer to remain competitive. Sony or LG??

Habiib says:

I will say with sarcasm, that if HTC had included an SD slot and removable battery, they would be extremely profitable instead of making meager profits. I'm seeing some "Hype" building for the release of their flagship. They took a smart approach by not only bringing a new device, but a revamped Sense UI. I hope they can capitalize on their head start and gain some traction while it last (until the GS4,GN3, etc. are released). Maybe I don't understand much about business, but HTC is already forecasting lower revenues for Q1 2013; how does that work? Maybe they will see some gains from that point going forward.

chuckh0308 says:

I think the biggest problem for HTC is that they let the carriers walk all over them. Their devices would be WAY better if they would dictate the specs and make the same models available on all carriers and then only bring out new devices no more than twice per year. Their R&D costs must be outrageous right now and simplifying the line-up would save them money AND bring in more revenue. And a little hint to HTC: 5" HD, quad core, LTE, 64 GB or memory (or MicroSD expansion), 3,000 mAh user replaceable battery, and a stylus. Sold!