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HTC Q1 2012 results reveal 70 percent plunge in profit

updated 06:50 am EDT, Fri April 6, 2012

HTC's profits continue to nosedive

HTC's Q1 2012 unaudited results are in (pdf) and they don't make pleasant reading. The company has revealed that its profits have slumped a massive 70 percent year-over-year on revenues down 35 percent. The result continues a downward trend that started in the second half of 2011 as the once leading Android smartphone vendor bled sales, largely due to the popularity of Samsung's 2011 Galaxy line-up.

HTC's Q4 2011 nosedived by 25 percent and marked the first time the company had recorded negative growth in the previous two years. At the time analysts suggested that its product line had become overly complex and needed to be rationalized. It also did not have a substantive answer to Samsung's Galaxy S II model, which has led to Samsung recording record profits. Worse, as the company tried to trim the prices of its models to remain competitive without a 'halo' phone to go head-to-head with the Samsung Galaxy S II, the drop in its profit margins significantly outstripped its drop in revenue for the most recent quarter.

Its new line-up of HTC One devices, led by the HTC One X, the One S and the One V were developed specifically to address its declining sales. The have been well-received and feature high-end hardware including slim unibody designs in either polycarbonate or anodized aluminum. Top-of-the-line processors in the NVIDIA Tegra 3 or the Qualcomm Snapdragon S4 also power the new devices. The company has also tried to further differentiate its line of smartphones with the addition of Beats Audio processing. [via The Next Web]

One X




One S




One V





By Electronista Staff
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  1. macnnoel

    Fresh-Faced Recruit

    Joined: Feb 2005

    -4

    70 percent down and yet

    This hardly equates to the company as suffering. I'm sure not many companies can claim having a market cap of almost twice as Google and revenue of 26.75 million dollars PER EMPLOYEE.

    http://www.marketwatch.com/investing/stock/2498?countrycode=TW

  1. bigmig

    Fresh-Faced Recruit

    Joined: Jan 2004

    +7

    Uhhhh...

    Macnnoel, the numbers you cite are in NT$. The exchange rate is 30 NT$ to 1 US$.

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +4

    Race to the bottom

    Re: "Worse, as the company tried to trim the prices of its models [...] the drop in its profit margins significantly outstripped its drop in revenue for the most recent quarter."

    Samsung is crushing the life out of both LG and HTC in the droidphone space. LG and HTC have pushed each other off the low-margin cliff. First one to the bottom wins. Enjoy the ride.

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