HTC's Profits Nosedive by 58% in Quarter 2
It's funny how quickly a company can begin a downward spiral from a few missteps (or a few lawsuits from Apple). RIM and Nokia easily come to mind as companies struggling for survival in the heated battlefield of the technology retail sector. However, you wouldn't have thought the same thing about HTC just about a year ago. At that time, HTC was pretty much riding high on growing profits and was the number one Android smartphone manufacturer. Not so anymore. The end of last year was abysmal for them, and Quarter one of this year wasn't any better. Now they jut released their Quarter 2 financials and they hemorrhaged profit by a whopping 58% drop. That's a lot of bleeding!
They claimed the primary factors for the decline was the hold up in customs of their flagship phones because of the Apple lawsuit victory, and slower than expected sales. Hmmm... it looks like Apple's lawsuit war is taking its toll. Here's a quote from HTC with a brief and unaudited look at their financials,
The HTC One X is an amazing phone. I wonder what its going to take for HTC grow strong again?
HTC RELEASES UNAUDITED RESULTS FOR 2Q 2012
Taoyuan, Taiwan – July 6, 2012 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announces unaudited consolidated results for 2Q 2012. For the second quarter of 2012, total revenues reached NT$91.0 billion. Unaudited operating income was NT$8.2 billion, net income before tax was NT$8.9 billion, net income after tax, excluding minority interest, was NT$7.4 billion, and unaudited earnings per share after tax were NT$8.90 based on 831,227 thousand weighted average number of shares.
It isn't showing any loss. It is still operating on pretty good profits. Also with their new killer device set for release soon it should see them on the rise again.
The only shadow lurking for HTC and Samsung is Nokia, their recent statement about having an android device if wp8 fails will have shook them a little. My dream device is a quad core pureview device, Nokia can port drive to android too, as long as Nokia don't screw it up it'd be the only droid device anyone would want.
Signing up with ms, meant they agreed cross license deals. Which ultimately means apple can never sue Nokia (because of ms & apple's x license deal). There will be no hold ups for Nokia.
I pray Nokia just adopt android anyway, it is the natural way for them to go. Android is very similar to symbian, but android just gets it right.
HTC can blame Apple but the real culprit is their own marketing department calling the shots on design. I have the One X and while I think HTC did a great job overall, they should have:
1. Provided a mSD card slot and a 32GB card in the box
2. Created a "hot swap" user removable battery, using a tiny rechargeable button cell battery to save the state while the main battery is swapped out for a charged one. Someone is going to do this. Whoever does it first will own the Blackberry business overnight.
3. Provided a fast and simple means to backup the One series to a dated folder on a PC or a Mac. Nobody needs separate widgets and apps for separately backing up contacts, calendars, SMS, photos, music, etc. "One backup" solutions what people need.
4. Last, but not least, HTC needs to address its Mac user base and get its Sync Manager for Mac to its customers. 3 years ago it was saying, "Coming soon." Today it is saying, "Coming soon." Really?
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