HTC Q3 results reveal massive 76 percent slump in profits
updated 07:25 am EDT, Fri October 26, 2012
HTC continues downward slide, while Samsung gains more ground
HTC has been unable to stem its backward progress in yet another consecutive quarter of profit reversals, reports Reuters. Its results for Q3 (pdf) show that its made $2.05 billion in revenue, from which it was able to eake out a profit of just $133 million. Compared to the same time last year, HTC’s revenue slumped by 48 percent while its proft was down a massive 79 percent.
In a statement issued by the Taiwanese handset maker, it said that its outlook for the fourth quarter was similarly gloomy. It expects revenue to slide a further 14.5 percent from Q3 while it expects gross margin and operating margins to shrink further to 23 percent and 1 percent respectively. This is down from 25 percent and 7 percent, as it has been forced to further trim the prices on its models to maintain and sales momentum.
By comparison, Samsung continues to lead the Android phone market, while HTC has stumbled. Last week, Samsung reported a record profit of $7.4 billion, most of which was driven by the sale success of its Galaxy line of smartphones. HTC has sought to stem the tide by also introducing refreshes to its model lineup, while it also hopes to gain traction in the Windows Phone space with its new Windows Phone 8X and 8S handsets.
