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HTC Q4 profits nosedive by 25 percent

updated 05:25 am EST, Fri January 6, 2012

HTC sees negative growth for first time in 2 years

True to its earnings guidance in Q3, which surprised investors at the time, HTC's Q4 results (pdf) for the period October to December showed a sharp decline in profit of 25 percent. The result marks HTC's first decline in two years, after riding a wave of success with a series of hit Android-powered smartphones. However, recently it has lost ground to Samsung in the Android space, which by contrast has been riding high on all-time record smartphone sales.

HTC's profit fell from $455 million to $364 million for the same period last year and analysts predict that its current decline is set to continue into Q1 this year. Its next generation of 4G LTE smartphones will not ship until Q2, meaning HTC may not be able to turn things around at least until then. These phones are not expected to show at CES, but at the Mobile World Congress.

At the time HTC predicted its bleak outlook for Q4, Gartner analyst Carolina Milanesi suggested that part of the reason HTC could be seeing a downturn in shipments is that many of its models compete with each other.

"They have many products really targeting a similar audience and this is never a good thing," Milanesi said.

"Although I believe HTC is still the vendor that has made more progress in building a company experience around Android, I think they need to look at their portfolio very carefully and rationalize it." [via Reuters]



By Electronista Staff
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Comments

  1. climacs

    Forum Regular

    Joined: Sep 2001

    +3

    wrenchyyyyyy...

    come out and playyyyyy...

  1. facebook_Patrick

    Via Facebook

    Joined: Jan 2012

    0

    makes SENSE.

    I became a huge fan of HTC when I first bought my Nexus One. I fell in love with the sleek metal casing, the quality and attention to detail was stunning. Over the last couple years HTC seems to have put out a massive list of plastic nondescript phones that seem no where near the quality they had originally put out in the past...that includes the Rezound I had for 4 days before it wouldn't stop restarting itself over and over. I since then have moved to the Samsung Skyrocket...it's no Nexus One, but the quality feels there.

    My suggestion...less phones. make your line up smaller and get back to putting in the time and quality that HTC has been known for. A smaller, higher quality line up will help HTC stand out from the all ready over run market of uninspiring phones.

  1. climacs

    Forum Regular

    Joined: Sep 2001

    +4

    side note

    so, last week I went to a Verizon store, my g/f's contract is up in April and she's on her third Droid phone. All of which she has hated due to buggy behavior and poor battery life. There was no way to get out of the contract early without paying an exorbitant fee, even three or four months early. It made no impression on the salesman that she was ready to get an AT&T iPhone at this point and that she was 50/50 on jumping to another carrier if she couldn't get rid of her crppy Droid phone ASAP.

    So during this discussion, the salesjerk said, "well, you have two weeks in which to return the phone. That's plenty of time to decide if you like it or not." Boy, is he lucky my g/f wasn't there to tell him how full of sht he was. I politely disagreed with him and we ended up having to agree to disagree.

    If there's one thing you know about an iPhone, it's that you know what the experience is going to be like and I would wager that the returns on iPhones are extremely low. But with the plethora of Droid phones on offer, it's difficult to evaluate whether you got a good phone or not and two weeks is NOT enough time to know whether it's a POS or not. Several of the problems with my g/f's Droid phones didn't show themselves until months after the purchase.

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