HTC profits plummet after HTC One delay

HTC appears to have suffered greatly due to the launch delay of its flagship HTC One smartphone in most of the world. The product was supposed to be available in late March worldwide but only became available in the UK, Taiwan and Germany by the end of that month, due to component delays.

Today, Reuters reports that HTC reported a profit of just $2.85 million for the first quarter of 2013. It was the lowest profit ever for the Taiwan-based company that makes both Android and Windows Phone-based smartphones. The numbers were 99 percent lower than the profits HTC recorded for the same period a year ago.

The HTC One is expected to go on sale in the US later in April. AT&T is also expected to start selling the HTC First on Friday. It's an Android smartphone made specially to run Facebook Home, the recently announced series of apps that turn an Android smartphone into more of a Facebook-based experience.

HTC launched the Windows Phone 8X and 8S devices in late 2012, although the 8X was the only one sold in the US. HTC is rumored to launch a new Windows Phone 8 device, the HTC Tiara, later this spring.

Source: Reuters

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29 Comments

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This is a joke right? The HTC First, which was just announced ... what, a couple days ago(?) is coming out BEFORE the HTC One ? How does that make any sense at all ?
I was considering getting the "One" ... But I don't know now. With my luck I would get it and the device would not be supported at all.
Well my upgrade isn't until June anyway so lets see.

este said,
This is a joke right? The HTC First, which was just announced ... what, a couple days ago(?) is coming out BEFORE the HTC One ? How does that make any sense at all ?

2 reasons: The First could have been under development WAY before the One, the fact that you only learned about it a few days ago is because Facebook wanted to announce it with almost immediate availability.
The other option (that is also true), is that the One uses higher quality materials that are difficult to source and they been having supply issues all around. Their biggest mistake was to announce the One way before they had a healthy production output.

Either way, it is still pretty bad for HTC. In Android, they have to face Samsung. In WP, they have to face Nokia.

MDboyz said,
Either way, it is still pretty bad for HTC. In Android, they have to face Samsung. In WP, they have to face Nokia.

they had a chance to take WP and run with it,but they were content on focusing on android,and now android has done nothing for them,and in that time,nokia came about and took %80 of the WP market. HTC is stuck and one single phone is not going to get them out of this rut. They need something drastic to change the tide because a phone shell alone wont cut it.

vcfan said,

they had a chance to take WP and run with it,but they were content on focusing on android,and now android has done nothing for them,and in that time,nokia came about and took %80 of the WP market. HTC is stuck and one single phone is not going to get them out of this rut. They need something drastic to change the tide because a phone shell alone wont cut it.

Agreed. You can hardly make a profit on low and mid-range phones. profit comes from the high-end models and currently Samsung has the popular Android model. With the Galaxy brand they pretty much own Android now.

But IMO the best way to get a popular high-end Phone is to have a popular brand. Which you get by first selling tons of mid-range devices. Samsung did the same with their Galaxy brand. People wanted the Galaxy S2 because it was the new high-end device in the Galaxy line, of which everybody had cheap prepaid such as the Galaxy Y.

That is how Samsung got things rolling and why I think Nokia is on track with the Lumia 620 and 720. These devices will sell well worldwide because they're attractive and affordable. Big sales numbers will attract developers and provide free promotion. Afterwards the high-end models will also become more popular.

HTC is lacking in this aspect. Their high-end models are great but they have no mindshare among average consumers. Looking back its sort of their own fault because their low-end devices have been crap which turned people away from them.

vcfan said,

they had a chance to take WP and run with it,but they were content on focusing on android,and now android has done nothing for them,and in that time,nokia came about and took %80 of the WP market. HTC is stuck and one single phone is not going to get them out of this rut. They need something drastic to change the tide because a phone shell alone wont cut it.

80% of a market thats barely a blip on the radar is nothing...you would be better off with 2% of the Android Market than 80% of a minuscule market like windows phone

Sonne said,

80% of a market thats barely a blip on the radar is nothing...you would be better off with 2% of the Android Market than 80% of a minuscule market like windows phone


Uhm, HTC has more then 2% of the android market and look how they are doing dude...

HTC was fine 2-3 years ago, in what shape was Nokia 2-3 years ago... oh yea, on their way to bankruptcy.

Hey but thank you for wishing Nokia would die a horrible and fast death mate!

Dead'Soul said,
HTC must focus only Android IMO. They must quit WP platform for reducing costs. I think they will be better.

They tried that for many years and without succes. They continue to go down. But I wouldnt mind if HTC dropped Windows Phone. Their devices are poor Lumia rip-offs anyway. You can tell they arent all in as Nokia is.

Well, since the HTC is the only slim phone in the WP8 lineup right now, I hope they don't.

If anything, get a WP ONE out asap.

Dashel said,
Well, since the HTC is the only slim phone in the WP8 lineup right now, I hope they don't.

If anything, get a WP ONE out asap.

The HTC 8X is 10,1 mm thick and the Lumia 920 is 10,7 mm. It's not that big of a difference but if you want something slim then get the Lumia 720 which is 9 mm.

Wow. The $2.85 million figure is almost unbelievable. Samsung reported a quarterly profit of $7.7 billion. Hopefully they'll do better next quarter.

Anaron said,
Wow. The $2.85 million figure is almost unbelievable. Samsung reported a quarterly profit of $7.7 billion. Hopefully they'll do better next quarter.

Well, we need to stop and remember that Samsung is also way bigger than HTC. That $7.7 billion isn't just from phones. Htc doesn't sell pcs, tvs, bd players, other kitchen appliances, memory chips, and other parts that go into other products and so on.

neonspark said,
now if only nokia switched to android then everything would be fine. HTC showing nokia how it is done!

Andorid is not HTC's problem.

techbeck said,

Andorid is not HTC's problem.

that's not what they mean. theyre saying everyone was telling nokia if they went with android,it would be instant success. well HTC is android and theyre doing poorly,therefore that strategy would have done absolutely nothing different to nokia.

lets be honest here, and I know its sometimes hard for the people on here to accept, but nokia and WP8 are not exactly taking the world by storm, far from it actually.

I am Reid said,
lets be honest here, and I know its sometimes hard for the people on here to accept, but nokia and WP8 are not exactly taking the world by storm, far from it actually.

I think the main thing people are pointing out is that Android wouldn't have been a 'sure thing' either. HTC is one of the first to adopt Android and things are going very poorly for them.

Besides Nokia made over 500 million dollars profit in Q4 2012 alone. And unlike HTC all of their new lines are actually seeing increased sales. Their high-end Lumia line and their low-end Asha line are both seeing increases of over 100% Year-by-year.

And with the Lumia 620 and 720 Nokia has created some amazing mid-range devices as well. I think the 720 can really turn things around. It will be the mid-range device that everybody wants, just like the original Galaxy models back in the day. It will make the high-end models such as the 920 more attractive as well. Of course thats just make prediction but right now Nokia is doing better then HTC and they're going up whereas HTC is going down year-by-year.

vcfan said,

that's not what they mean. theyre saying everyone was telling nokia if they went with android,it would be instant success. well HTC is android and theyre doing poorly,therefore that strategy would have done absolutely nothing different to nokia.


Actually Nokia's shares have been on the rise. They are back into the profits and are slowly but steadily growing.

Nokia is the exact opposite of HTC, they where like HTC before jumping ship with Microsoft.
Nokia going WP has saved them, Nokia picking Android would've been their downfall.

Nokia isn't nearly as good in advertising their products to the masses as Samsung, now they can because they are different... what if they are the same...