HTC posts Q2 2012 results, net profit down over 50 percent
updated 07:05 am EDT, Fri July 6, 2012
HTC Q2 results continue to disappoint despite revamped line-up
HTC has posted yet another weak quarterly result (pdf) with profits down nearly 58 percent compared to the same period last year. It follows a precipitous plunge in profit of 70 percent that it recorded in Q1 this year, after Samsung’s Galaxy S II overshadowed its 2011 product range. Worryingly for HTC, its new and critically well-received One-series line-up seems to have done little to turn the company around in the face of the Samsung onslaught led by the Galaxy S II and S III.
HTC recorded a profit of $250 million over the months of April to June whereas it managed to rake in over $500 million during the same period last year. The company blamed weaker than expected sales in Europe while also citing the unexpected US Customs embargo placed on its new handsets courtesy of a ruling by the ITC instigated by Apple. Even taking these anomalies into account, HTC seems to have its hands full trying to stop the spotlight shining brightly on Samsung’s handsets.
HTC had a disastrous 2011 following a period of sustained growth in sales. Throughout 2009 and 2010, it held much of the momentum in the Android market. However, its 2011 line-up was criticized for being somewhat confusing and cluttered. Its acquisition of a 51 percent stake in Beats Audio valued at $300 million has also so far failed to make the hoped for sales impact. HTC shares closed down 5.15 percent in trading ahead of its announcement.
