Android Central

HTC has reported its financial results for the third quarter of the year, showing a continuation of the slump in revenues that has characterized the company's 2012 performance. From July to September, HTC's net revenue was $2.397 billion (NT$70.2 billion), down from $3 billion (NT$91.04 billion) in the second quarter. Net income after tax is reported at $133 million (NT$3.9 billion), down from $247 million (NT$7.40 billion) in Q2. According to reports from Bloomberg, today's numbers represent a 48 percent fall in revenues over the past year. The NT$70.2 figure sees HTC narrowly land within the forecasted NT$70-80 billion window.

HTC has faced strong competition from the likes of Samsung and Apple over the past year, and despite putting out critically-acclaimed phones like the One X, HTC has failed to shift its devices in as great a quantity as Samsung's Galaxy line. The company will be hoping to reverse its fortunes with refreshed Android handsets this fall, along with a renewed focus on Windows Phone, through its Windows Phone 8X and 8S handsets.

Source: Bloomberg, TNW

 
There are 28 comments

mwara244 says:

A windows phone? seriously? Yeah need to get in that market of 4% windows os has in mobile, gonna make you the billions. Concentrate on Android, the one x was the first in the right direction for the first time, that's why HTC was losing money, crap design and terrible sense. Need to focus on the Nexus brand that is booming right now. Make a quadcore, 2 gb ram, with an amazing display and camera, and you'll have a winner.

"Make a quadcore, 2 gb ram, with an amazing display and camera, and you'll have a winner."

Isn't that the One X+ or does it still just have the 1gig of ram?

Per AC's original review of the One X+, HTC did not increase the memory - still at 1 GB.

Indeed, the WHOLE REASON HTC lost their marketshare, was they took their eye of the Android ball and wasted time with Windows Phone, which let Samsung have carteblanche to move to the top of the pile.

Stupidly, HTC don't see this, and are making the same mistake again.

If HTC want a new CEO, I am willing to step into the role, as I wouldn't trust their current one to even tie my shoelaces.

jarobusa says:

You do realize Samsung makes far more Windows phones than HTC?

XChrisX says:

Honestly I really wanted an HTC One X but 16gb hd without a micro SD ultimately pushed me to the S3.

rovex says:

For me the Issue with HTC was a run of poor phones in 2011. Nothing to do with Windows phone. Desire HD (poor screen), Sensation (poor battery, too thick) and many more. Battery hogs, poor build, poor screens, not stylish, and uncompetitive. This years devices are better for sure, but they still have a few issues. The One X was a battery hog at launch, and build issues with the Ones S.

I still dont like Sense either, its just too heavy. Touchwiz is lighter and hides better behind a custom launcher.

Id love another HTC, ive had a few in the past, but the Galaxys are just better sorted devices.

wezra says:

Not sure what you are referring to in terms of build quality of the One S... It's the best phone I have ever had, and I've had a ton of phones over the years. I think the problem is obvious. HTC should have made the One X available to numerous carriers vs just one in the United States. Like Samsung did with the SGIII. That way you would have had wide spread distribution of a single high end device instead of having 3 devices, all with different specs on different carriers. You also cut production costs. The only variable is making it compatible with the various networks... which Samsung seems to have done without much of a problem. Very smart on there part.

The One S is a great phone, no question... when it gets JB it will really shine. But that said, I would have really liked to have had the One X. At upgrade time I will have a hard decision to make... stick with HTC or move to the latest high end Samsung phone that T-Mobile has at the time. With government assistance HTC will survive, but they better get their marketing strategy together. Windows Phone 8 isn't going to do the trick!

coronaboy10 says:

agreed

rovex says:

The One S had issues with its coating chipping and falling off, it was widely reported. Maybe it only effected European models i dont know.

The US is an issue for HTC, but the there are no such issues in the rest of the world. I still maintain that the 2011 models put people off, they certainly did me.

still1 says:

all they need to make is HTC Nexus

troyboytn says:

Over the past few years, HTC devices have suffered from poor build quality and terrible post sale support, including but not limited to timely "fix" updates as well as major software updates....in some cases, ICS came up to 8 months (or not at all) after it was originally promised on specific devices. And lets not forget the whole fiasco surrounding Carrier IQ, the mobile spying/tracking "rootkit" that was discovered lurking on mostly HTC devices.

All of the issues above, plus several more, translate into once faithful HTC buyers (some of which bought 4-5 HTC devices in a row) throwing in the towel and moving on to Samsung, Apple, Sony, Nokia, and LG devices where the above mentioned issues are largely not present.

Good luck HTC, I hope your downward spiral can be contained but I believe that whatever you do will be too little, too late.

Magnus#AC says:

HTC shot itself in the foot with a grenade launcher when it decided to include an anemic non removable battery and no external SD support. That allowed Samsung to run away with the market even though HTC released their phones first.

Also HTC needs to learn to enhance Android like Samsung does, not just slap some UI on top of it.

I was going to get an HTC phone this year (I believe millions of others were too) until I learned no removable battery and no external SD, then I gave HTC the middle finger. If I wanted a lame and restricted device I would have purchased that popular overly expensive fruit.

Magnolia Man says:

my thoughts exactly!!
in the trend to be "thin" they put batteries in the One X line up that were way too small.
& if i wanted a phone with no expandable memory or removable battery i would get a Nexus. especially since i prefer stock ICS/JB interface over bloated Sense

DAS says:

Marketing! Marketing! Marketing!

You can't go anywhere these days without seeing a Samsung add on a billboard, tv commercial, or even right here on this website.

Even with all the hoopla surrounding the Apple patent case, Samsung stayed in the news and thus in front of the eyes of the public.

If you ask ten people on the street which company makes Android phones, I bet at least 7 out of 10 will say Samsung. HTC, LG, even Motorola are an afterthought for the average consumer. Most people only think of Apple or Samsung.

If HTC wants more market share it won't come from better screens, storage expansion, removable batteries, or build quality. Consumers are fickle, and the majority buy based on brand name. Apple figured this out a long time ago, and now so has Samsung.

wezra says:

You are absolutely right! Not having a removable battery or SD card is a non-issue to the average consumer... that is obvious. It's all in the name and what that name stands for.

I have been involved in the non-consumer side of electronics for many years... go back to the Sony Betamax and 1/2" industrial video days. Samsung was thought of as a second tier manufacturer who made mid-road electronics. Everyone wanted a Sony Trinitron TV and (initially) a Betamax VCR. Even though the Betamax was not the best format for home video, initially, most consumers wanted one because it was a Sony. Sound familiar... Apple and iPhone? With Panasonic, JVC and VHS, and, a huge marketing campaign, the rest is history. But all that said, their are a lot of similarities in terms of marketing strategy. Had Sony not backed down and pressed harder who knows what the outcome would have been. Instead, even Sony went with VHS.

It's all marketing. HTC has done a horrible job in marketing their smartphones. I am not sure most consumers even recgonize the name let alone the products that name represents. Samsung has come a long way since the 1970's and their phones, while maybe not the best in terms of quality, fit and finish, certainly own the Android market because of name recgonition with the consumer. My HTC One S is built far better than any Samsugn phone on the market... no question about that. But if HTC can't project that to the consumer, it makes little to no matter.

tyson.clarke says:

Here here. HTC should focus on marketing what they are good at, and their unique proposition to the market.

I personally find that HTC is a great Android baby step for an Apple enthusiast. For whatever reason, iOS users just seem to really enjoy Sense. It works for them.

There's a great market share (ie. iOS) to focus on, and they could piggy back on Samsung's already great marketing in switching Fruitloops over to the good guys.

a22matic says:

Agreed!

newmexican says:

They did not get my business this year either. They built the best qwerty sliders in the business (TMOs G1 and G2) and now when I am ready to upgrade again all I see across all US carrier's are Samsung's Galaxy S Relay and Motorola's Photon Q

Even considered the regular Galaxy S3 and the HTC One S and the verdict is: My business will go to the next company that builds a good qwerty slider for TMO.
HTC, I hope you hear me :D

KTMKTM says:

The lack of marketing and having the One X exclusive to AT&T shot them in the foot IMO.

You can't go an hour of watching TV without seeing a Samsung ad. I can't recall ever seeing a HTC ad besides the very recent ones touting the One X for $99. Where were they the first 5 months it was out?

And ignoring the top carrier in the US didn't help. I'm stuck on a VZW family plan and wanted to buy one really bad but they decided to make it GSM only. I instead had to resort to the RAZR MAXX.

a22matic says:

If I see that S3 infomercial in the movie theater again!? Samsung has flooded the market with their advertising. HTC may not be able to compete on that level, but they have to try to compete on some level.

jackinit says:

They continue the stupid behavior by making the One X+ an AT&T exclusive and spending no money on advertising. The lack of SD and removable battery are also plain stupid.

Look at Samsung. No carrier exclusives, 20 million sold! Dumbasses!!!

Release your flagship to all carriers!!! You can dictate the terms like Apple and Samsung!

calvin35 says:

No they can't. Apple and Samsung are the only two companies that are able to do that.

rkirmeier says:

HTC needs to open there eyes and see what the competition is doing. The only people buying a HTC One X or X+ over an S3 are those hung up on screen bragging rights. The S3 is simply a better phone in every way except "technically" the screen but 9 o 10 people can't tell the difference in the screen. Tangible things like MicroSD, removable batteries, wireless charging, wireless all-share, and 2GB memory sell phones. Time to wake up HTC!

axllebeer says:

Agreed that the pros vs the cons from HTC and Samsung makes it hard to choose HTC on AT&T. But on Sprint the Evo 4G LTE version of the 1X series is a far better phone. Not for everyone and the network isn't as good as AT&T's is, but the build quality and inclusion of removable storage should have been on the 1X series too. When I was choosing between the 2 after holding them both, the S3 just feels cheap. It's an amazing device, but couldn't get past the feel of "I'm going to break this".

rkirmeier says:

I personally love the fell of the S3. It's such a great pocket phone being light and having the rounded corners (both side to top and back to side). I've dropped my phone twice now from waist height and other then a few scratches it fine. Light and plastic does not mean cheap and weak!

Legobricke says:

HTC needs to learn a few things before they even have a chance!

They do create some excellent hardware... I loved my Droid Incredible and i'm very content with my Rezound. Other than HTC releasing the Rezound as basically a dump phone, I've been happy with them...

But until they learn how to market their phones and release their flagship across all carriers, they haven't a chance... The days of the exclusive are done. People want a choice of carrier and aren't so likely to jump ship to a different carrier just because of a phone.... The Galaxy series is a classic example of Marketing and Release. No wonder they sucked up a huge market share.

lean6 says:

Maybe a few more carrier-exclusive deals will help them out. (sarc) After reading reviews that the original HTC One X was going to be the best thing since sliced bread, I wandered over to Best Buy, considering leaving Verizon to get it. "What...just 16GB (14 usable) and no SD slot or removable battery? No thanks." I actually did jump ship from Verizon for the Galaxy Note for about a week, until I realized that AT&T cell coverage at my office was non-existent. I'm not sure how many phone-crazed geeks like us they think are out there! Also, fewer and fewer people are gonna be willing to eat an ETF for a device that will only be king of the hill for a month.