HTC posts worse profits in company history

Posted on Apr 8 2013 - 4:55pm by Mike Wewerka
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HTCONESilver Multi BIG 580x320 HTC posts worse profits in company history

I’m not really sure what to say about this startling bit of news, but damn. HTC, who has seen their profits decline for over 5 straight quarters (over a year) have just posted their worst quarter yet. In all, the company only posted profits of just $2.8 million. To put that into perspective, both Apple and Samsung posts profits in the billions.

So what went wrong this time? HTC’s sales have continued to decline, but that was all suppose to change once the company’s newest flagship device, The One, made it to the market. The only problem is The One has been delayed—perhaps due to several rumored reasons—but it funnels down to one thing, The One is still missing in major territories. When it does actually make it to retail channels, it will unfortunately go head to head with Samsung’s Goliath, the Galaxy S4. While the HTC One may be a superior phone in terms of quality components, display PPI and higher end materials, public perception is a completely different animal. Samsung has the marketing budget to make the Galaxy S4 more appealing to consumers.

The HTC One will be the company’s saving grace or it may be their last ditch effort. Their Windows Phones aren’t selling either, but that’s not their fault, they too are nice devices. That blame falls on Microsoft. They just announced another new device, the HTC First with Facebook and AT&T. But do people really want a Facebook phone, when they can just use the existing app? Time will tell, but the sand in the hour glass is getting low and HTC needs to quickly find a way to turn it over.

Source: Bloomberg