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HTC has no plans to further shrink fall guidance

updated 08:05 am EST, Wed December 7, 2011

HTC says Q4 not toned down despite November

HTC stated Wednesday that it had no plans to further drop its low fall outlook. In spite of a steep November drop, which was down 30 percent month-to-month and 20 percent year-over-year, it still saw revenue down 23 percent from earlier estimates, or roughly the same as a year ago. The company's share price has plunged 40 percent in just over a month over jitters that HTC had stopped growing.

The blame has been pinned on a muted response to HTC's current lineup amid much tougher competition. It's counting the most on the Vivid and Raider, both of which still struggle in performance versus Android peers like the Galaxy S II, as well as the Rezound and numerous variants on the Sensation. Without a clear halo device of its own, it has fought to get attention.

Much of the blame has also been put on Apple. The iPhone 4S launch shifted attention back to Apple and also targeted HTC's core markets. In seeing the iPhone go to Sprint, HTC lost a shelter from Apple and was immediately kicked out of the top three phones at the US carrier after having dominated it since 2010.

The shrink has called into question the frequent assumptions that Android would keep growing rapidly and that an unassailable majority was inevitable for the platform. Samsung, usually considered the fastest mover in Android, may now be taking share from fellow Android rivals as much as weaker competing platforms like the BlackBerry or Symbian.



By Electronista Staff
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Comments

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +2

    HTC could face a ban in the U.S.

    Last summer, an International Trade Commission judge found that HTC infringed two Apple patents. HTC appealed, and the final decision will come down on December 14th. And it's looking bad for HTC. Their stock price took a huge hit after the initial ruling, and it has stayed down pending the final decision.

    Florian Muller, technology patent expert and publisher of FOSS Patents, said "It's hard to see how any Android device could not infringe [the patents], or how companies could work around them. Those patents are apparently infringed by code that is at the core of Android."

    So it's not just HTC. All Android manufacturers are threatened by this suit. Does Apple need a few extra billion from patent royalties? No. (Microsoft went that route, and they now make more money from Android than Google does.) But Apple would profit more by selling more iOS devices. So instead of cutting a licensing deal, Apple will seek an injunction against sales of HTC Android devices (and eventually all Android devices.)

    Looking good for Apple here. Time to buy more popcorn.

  1. BigMac2

    Forum Regular

    Joined: Dec 2000

    +1

    Lames excuses

    "Much of the blame has also been put on Apple."

    What a pitiful excuse, Apple don't do promo to undercut other grass like Microsoft and Android deals doing. If the market as shifted their attention back to Apple is because other products are boring,

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    There he goes again

    SockRolid passing along FUD to try to scare away phone users.

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