HTC's February revenue down 44% year-over-year

HTC isn't having such a great time at the moment: Apple and Samsung dominate the smartphone industry; their new One smartphone, while good, doesn't topple Apple's iPhone or Samsung's Galaxy; and no tablet is in sight to help restore the company's horrendous balance sheet. 

HTC have just released their monthly consolidated revenue numbers and they're pretty bad. Revenues are down 44% year-over-year, coming in at just $384 million (NT$11.37 billion), with a 26.8% drop in revenue from January 2013. Last month, HTC reported a net profit of just $34 million (NT$1 billion), their lowest profit since 2004 - when HTC was still an anonymous OEM making phones for Palm. 

The current smartphone climate leaves very little for companies such as Sony, HTC, LG and others who are struggling to live off the scraps that Apple and Samsung leave behind. In Q2 2012, Sony reported a loss of almost $200 million, while LG didn't do much better with a net loss of $98 million in Q4 2011. 

HTC have had several chances at reviving their smartphone operations, originally with the One X, S and V series and now with the One, which have all been unsuccessful so far, as Samsung and Apple continue to take 98% of all smartphone profit.

Source: HTC

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46 Comments

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HTC need to dump android I think, it is not making them any money, hasn't made them any money period just bleeding from every pour. They need to come out with new fresh phone designs and run WP8 and support it like Nokia does. The only company that is and will make money from android is Samsung and I believe they too will fork there android os sometime soon and cut out Google completely.

Scraps? There are 7Billion people on this planet. At least 50% are old enough to use a smartphone. Why arent they buying other brands beyound Apple or Samsung? Simple, those other phones suck. LG with exception of this one that resembles the Note makes g=crappy looking device...so does Motorola. Sony Xperia looks ok, but they are all boring. Samsung offers great features and style, even if the features are gimmicky in nature. Apple just makes a good looking phone that is simple and is a fad device every feels they must have to be "somebody". The rest of the guys arent even trying. How often do you see marketing of phones from other brands?

All i do see is Apple and Samsung constantly running ads trying ot one up each other. If you want people to buy your stuff, let them know it exists.

I'll take a lower res AMOLED any day of the week. As much as I like the 8X, view it a little off center and it makes all the difference in the world. WP's bias towards black is another reason.

I won't be buying HTC ever again... They do not provide any support for their products...

My HTC windows phone will not be getting 7.8 update.... I will stick with Nokia from next time...

visu9211 said,
I won't be buying HTC ever again... They do not provide any support for their products...

My HTC windows phone will not be getting 7.8 update.... I will stick with Nokia from next time...

Agreed, they left me and too many other users out of date for too long. I had an evo that always took over a year to get the updates other phones were getting in a couple months, then stopped supporting the phone at all. Never buying an htc again.

Well, I have a htc 8X and would like to see HTC put more into support than just releasing new hardware and forgetting about it. Look at all the software and services side work others do, Nokia, apple, Samsung as well to a extent.

I agree with you on the great Nokia apps. But I just went from 920 to 8x on my way to a 64GB One+ and I have to say the 8X is really impressive. Light and fast, and nice looking. Nice in the hand. And I'm truly impressed with WP8 restore which includes auto app download and installs. The 8 line's cloud sync is nice across all the products. Unfortunately WP8 just doesn't support all the phone tech I need right now, but the 8X is just as impressive as the 920.

I used to like HTC, and the HTC One looks pretty good, but seeing as how the customer service is awful from them, I am not surprised.

I switched over to a Lumia 920 and have been very happy with the overall support, and dedication Nokia is bringing to the table.

Dot Matrix said,
The Droid Army is collapsing...

Check how many different, independent automakers existed in the '70s compared to nowadays. Globalization means that fewer companies can survive.

Ouch. At least they're doing better than Sony and LG. Apple and Samsung just have too big of a piece of the smartphone pie. 98% of all smartphone profit is just crazy between 2 companies.

Anaron said,

98% of all smartphone profit is just crazy between 2 companies.

Well, they won it through innovation and marketing. HTC had phones out before Samsung, so they had a fair chance.

maxslaterrobins said,

Well, they won it through innovation and marketing. HTC had phones out before Samsung, so they had a fair chance.

I think it's mostly due to marketing. Apple and Samsung have much better brand development than HTC, LG, Sony, etc.

The competition is fierce so hopefully that will make HTC and the other companies release better products (to make up for lower brand awareness).

Anaron said,
I think it's mostly due to marketing. Apple and Samsung have much better brand development than HTC, LG, Sony, etc.

The competition is fierce so hopefully that will make HTC and the other companies release better products (to make up for lower brand awareness).

It's exactly that, people don't buy a Samsung they buy a galaxy phone, or a iPhone. Nokia is doing the same with the Lumia, people buy that not a windows phone. It's all about the branding and htc can't get it right.

I also think that lots of people have been burned on lower end cheap android htc devices that ran poorly and gave them a bad experience. They don't blame the OS but they blame the device maker in these cases. It's all htcs fault in the end

maxslaterrobins said,

Well, they won it through innovation and marketing. HTC had phones out before Samsung, so they had a fair chance.


What exactly Samsung innovated in their Android range? I can't think of anything besides phablets.
It was mostly marketing with some iOS copying on the side.

Really hope HTC starts doing well and turns things around. Had a couple of their early phones and design aside, they worked great and no issues. The modding community also supports HTC phones, or they used to, more than a lot of other manufacturers.

Anaron said,
Weren't they the first major smartphone company to release an unlocked bootloader? I think they released it in 2011.

I believe so. Or one of the first anyway.

maxslaterrobins said,
Not since a few years ago when they streamlined to just the One X, One S and One V. Before, I agree, they had too many models.

Not true. There's the One, One SV, One X+, Desire X, Desire C, One XL, One X, One S, One V. And that's just the current product line. It's a convoluted mess.

My current phone is an HTC but I very much doubt I'll be getting another HTC when I upgrade.

MS should give them a short term loan and make them a WP exclusive hardware maker. It's obvious their android phones are not selling and Samsung has android locked up. HTC may have a chance with windows phone but Nokia may have that locked up as well; still their 8x and 8s devices were pretty well praised even with the lumia 920 being available at the same time. This helps WP out and gives the android market one less manufacturer.

Interesting idea, but Microsoft already has Nokia. There is literally no-one HTC can turn too. Their only hope is a really, really big surge in One sales or an awesome tablet.

BajiRav said,
So I guess they should have gone Android instead of Windows Phone if they wanted to do well...oh wait.

Android isnt the problem. Its design and all the different models they were producing. Lots will pick the way something looks over functionality.

BajiRav said,
So I guess they should have gone Android instead of Windows Phone if they wanted to do well...oh wait.

I don't think that's the problem. The problem is that HTC isn't rich enough to do well. Samsung have poured billions upon billions of dollars into advertising and it has worked. Apple, however, were first and are unique (iOS, design, etc.) and also pours billions into advertising. HTC doesn't have such a luxury so hasn't done as well.

It's a shame because, arguably, their phones are better than Samsung's.

BajiRav said,
So I guess they should have gone Android instead of Windows Phone if they wanted to do well...oh wait.

HTC's problem is it's image. HTC broke Sense and never really fixed it, they had repeated reliability and battery issues with their newer phones and flooded the market with senseless phones. The real problem is the company making the hardware and the bloated software. Samsung is making a killing with their advertising, their products are selling like hot cakes.. It's all about the company and management. HTC is still a terrible company and they won't recover unless they change their whole dumb strategy.

I am not saying Android is the problem. I am saying Android is not a silver bullet. People like to claim that Nokia would have done better if they had gone Android instead and that argument in HTC's case falls flat on its face.

BajiRav said,
So I guess they should have gone Android instead of Windows Phone if they wanted to do well...oh wait.

If Android was the problem Samsung wouldn't be rocketing ahead, ZTE and Huawei also gaining thanks to Android at the expense of HTC and the other Android OEMs.

of course Android is the problem... samsung produces tons of models with difference little to none, bad design and pathetic materials

if htc stays primarily on android they gonna die, or better yet gonna be sold to someone

once again the google business method f___s another market - the online advertising scene wasn't enough

BajiRav said,
I am not saying Android is the problem. I am saying Android is not a silver bullet. People like to claim that Nokia would have done better if they had gone Android instead and that argument in HTC's case falls flat on its face.

Nokia makes good hardware and support it, HTC does not anymore. Check the prices For HD2 devices on Ebay.... The OS is not the key, the hardware and the support is.

Yeah, I have an 8X I've never used, but I am switching to a One +, and will upgrade to the new One when it is available on AT&T soon. Has all the features and apps I need apt-x, BT 4.0, all my fitness and banking apps. But then again, so do almost all higher end Androids and iPhone 90% of everything. iPhone doesn't work with all the BT HRMs.

@Dashel, By happenstance I had to fire up that 8X moving from a Lumia 920. First the WP8 restore is nice, very nice. Second, after the Lumia 920, the 8X is weightless and soft in the hands, and quite fast. Have to check out the Audio and Bluetooth performance. Nice, nice phone. But I also just got the One+, 64GB, Sync Manager (better than WP8's App) and BT apt-x. As nice as the 8X is, I gotta go back to Android. And I will upgrade to the new One. That's just my style. I'll probably got back to WP at WP9, when they support all the phone tech the Android phones do today. Ordering a BT heart rate monitor this afternoon.

My wife has an 8X and it is my fav WP8 device so far, but I think the format of the ONE would suit me better.

I just don't understand why companies like HTC don't concentrate on fewer, better devices that can easily run either WP/Droid flavor the user wants.

That would be nice. With 32GB and 64GB models, going to the new One is a no-brainer for me. Even if making playlists isn't as easy as using Zune or WMP (Zune doesn't work with WP8 anyway) it's no problem when you can copy your entire collection tot he phone. I also listened over Bluetooth with apt-x and was amazed at the quality on the One+, with beats enhancement over Bluetooth. It's the first time I actually listened to a phone with beats and was impressed. CD Quality over BT with apt-x. It's a great phone and the new One will be just as nice. Like me, I don't think a lot of people know who good these phones are. I suppose that's HTC's fault. Sad to say, I may never go back to WP8, it's so far behind for my needs/lifestyle uses.

Dashel said,
My wife has an 8X and it is my fav WP8 device so far, but I think the format of the ONE would suit me better.

I just don't understand why companies like HTC don't concentrate on fewer, better devices that can easily run either WP/Droid flavor the user wants.