HTC sees its profits take a big hit in Q2 2012

The once high-riding HTC is seeing its financial situation getting worse, thanks in part to a recent patent dispute with one of its biggest rivals, Apple. Today the Taiwan-based smartphone maker announced that its profits for the second quarter of 2012 were less than 50 percent compared to a year ago.

Reuters reports that HTC generated a profit of T$7.4 billion (about $247.7 million), the company said, down from T$17.52 billion from the second quarter of 2011. Revenues were actually up, coming in at T$91 billion compared to T$67.79 billion for the same period a year ago.

In explaining the cut in profits, HTC said that the current economic situation in Europe was hurting demand for its smartphones. It also brought up a recent patent dispute issue with Apple that caused US Customs to temporarily halt shipments of its HTC One X and the HTC 4G LTE smartphones. Both devices were later cleared to be shipped to the US again.

HTC has been named as one of four hardware launch partners for Microsoft's Windows Phone 8 OS, along with Samsung, Nokia and Huawei. A recent rumor claims that HTC will offer three Windows 8 based smartphones for sale by the end of 2012.

Source: Reuters

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23 Comments

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Riva said,
**** devices, Lots of devices, focus on Android only.
HTC was better off when it focused on Windows

HTC was a tiny company when it made Windows Mobile handsets. People like to forget this but with it's Android focused strategy HTC enjoyed two record years, a few bad quarters and such rapid expansion doesn't mean game over.

Maybe they should INCREASE the number of phones they release! Rapid-fire release of a new phone every week. Maybe even two a week! Yeah!

They need to make sure they let their customers know they just bought something that will be out of date within minutes. That's what people like. They want to buy something rushed to the market only to have it become "the old one" immediately.

I mean, look at Apple. They drag their feet and release one device a YEAR. They're about to go out of business!

Lack of innovation and quality for recent products. samsung took their place though they have cheap stuff too but display and camera is better on samsung.

Maybe it's time for HTC to try something new. The HTC One X is an amazing phone, I expected it to turn things around for HTC, but it's strange that they're still bleeding money.

Unfortunately HTC is kind of like the high end bargain basement of Android phone - Im a HTC One X owner and it could be better - admittedly its a better design than the SG3 but they always miss something.

Orange Battery said,
Unfortunately HTC is kind of like the high end bargain basement of Android phone - Im a HTC One X owner and it could be better - admittedly its a better design than the SG3 but they always miss something.

HTC One X is better looking that the Samsung and same specs. I'm surprised they have issues.

This is what I was expecting, another quarter and another loss in profits, that's 3 quarters in a row now. It's easy to blame it on legal problems with Apple but that's half the story. Samsung has legal battles with Apple yet they're raking in the cash and eating up the Android market.

Let's face it, HTC had it's time in the light with Android, then Samsung stepped up it's game with the Galaxy line and now HTC and the rest of the android OEMs are eating it's dust. I don't see HTC changing things anytime soon either, the odds of them posting nothing but losses for all of 2012 seems like it could happen now.

Perhaps they should focus their efforts on Windows Phone. Android certainly doesn't seem to be working out for them.

jakem1 said,
Perhaps they should focus their efforts on Windows Phone. Android certainly doesn't seem to be working out for them.

The profit margins are certainly much better. It isn't always as simple as volume... Profit is far more important in the long term.

M_Lyons10 said,

The profit margins are certainly much better. It isn't always as simple as volume... Profit is far more important in the long term.

That's certainly why Apple is sitting pretty, despite their small marketshare on both the desktop and phones.

jakem1 said,
Perhaps they should focus their efforts on Windows Phone. Android certainly doesn't seem to be working out for them.

They need to be able to sell in volume though...

Xerax said,
Maybe because they release a new phone every day that look's the same as all the others?

Or maybe HTC OneX was rushed to the market for early adopters to beta test?

Xerax said,
Maybe because they release a new phone every day that look's the same as all the others?

sanke1 said,

Or maybe HTC OneX was rushed to the market for early adopters to beta test?

I don't understand either of these comments.

Xerax said,
Maybe because they release a new phone every day that look's the same as all the others?

In that case, they're in the same situation as RIM

Maybe Nokia going android really wouldnt have been such a good idea....either way, they're still in deep doo doo.

efjay said,
Maybe Nokia going android really wouldnt have been such a good idea....either way, they're still in deep doo doo.

Between the Apple lawsuits blocking your products and Microsoft royalty fees for releasing an Android phone, the Android path just is not going to work for most OEMs and carriers.

efjay said,
Maybe Nokia going android really wouldnt have been such a good idea....either way, they're still in deep doo doo.

when it comes to HTC, they're pretty much being screwed by the carriers in the US. they were not able to release the one X on all carriers, esp since the evo or whatever is still around with that name. So they're brand recognition plans were pretty much foiled.

Not sure about europe or the rest of the world.

Avatar Roku said,

Between the Apple lawsuits blocking your products and Microsoft royalty fees for releasing an Android phone, the Android path just is not going to work for most OEMs and carriers.

Not to mention the often forgotten but considerable development costs incurred by these OEM's in order to ship Android. It is not a cheap platform for OEM's at all.

Avatar Roku said,

Between the Apple lawsuits blocking your products and Microsoft royalty fees for releasing an Android phone, the Android path just is not going to work for most OEMs and carriers.


And the fact that they flooded the market with Android devices had nothing do to with it?

efjay said,
Maybe Nokia going android really wouldnt have been such a good idea....either way, they're still in deep doo doo.

Well HTC is making a profit... Nokia is not. They are bleeding money.