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.