HTC's profit drops; Samsung's profit rises

HTC is taking it on the chin in terms of sales of its smartphones thanks in part to competition from Apple and Samsung. reports that today HTC announced that its profits were $148 million in the first quarter of 2012, down a whopping 70 percent from the same period a year ago. Revenues for HTC fell by 35 percent for the quarter.

This is the second consecutive quarter in which HTC has seen a significant drop in profits; during the previous quarter, its profits fell by 25%, leading the company to announce plans to drastically reduce its product range, as even its own chief executive, Peter Chou, admitted failings in its strategy. Such changes don't happen overnight, of course, and for now, it remains to be seen whether the new emphasis on fewer but better products will have a positive effect on the company's profitability.

Comscore also announced this week that HTC is now the fifth biggest smartphone maker in the US behind Samsung, LG, Apple, and Motorola. This news comes as HTC just announced the HTC One X, its new and very powerful Android 4.0 smartphone with a Nvidia Tegra 3 multi-core processor inside. Its latest Windows Phone device, the HTC Titan II, is scheduled to launch on Sunday in the US on AT&T.

Meanwhile, Samsung is riding high with some preliminary news on its own financial situation. reports that the company expects its profits to almost double to $5.12 billion for the first quarter, a whopping 96.6 percent increase compared to the same time period a year ago. The final results will be released later in April.

Samsung's sales success with the Galaxy S II smartphone is likely part of the reason for the massive profit jump. The company is expected to officially announce the Galaxy S III in the very near future.

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I think HTC sucks. I like HTC sense but with T-mobile I got the HTC Wildfire S which is an awesome looking phone until you see it only has 150MB of internal storage which 70%+ is bloatware. I also have a 32GB SD card but the trick was you need to hack it using Android SDK to move apps to it this did free up some space. Also with limited space it was hard to download and install apps.

I traded it in for the Samsung Exhibit II 4g well it doesn't have Sense which I did like it a much better phone as far as internal storage. I know both are entry phones and both were offer for free. Samsung Exhibit II makes me want to buy a Samsung phone in 24 months were as HTC I refuse to buy anything.

Thats what HTC gets for ****ting on all of the Evo 4G phone owners by not pushing out ICS to it. If they would have pushed ICS, I would have stuck with them and bought a new phone from them, instead I bought the Galaxy S2 that already had ICS come out (of course, it seems every version of the Galaxy S2 has ICS except the T-Mobile unit now). It's already been proven the 4G has enough horsepower to run ICS also by all of the rooted releases, all they are lacking is more hardware drivers and it would run fine on the Evo 4G.

HTC doesn't seem to try very hard and they went crazy with too many devices instead of making a few good ones.

Also with vz going all Motorola, that doesn't help.

spudtrooper said,
HTC doesn't seem to try very hard and they went crazy with too many devices instead of making a few good ones.

Also with vz going all Motorola, that doesn't help.

No matter how many devices. The main mistake was rejection of Desire brand. Desire was very popular, so as Desire HD. They should have kept it for annual flagship devices. Instead, Desire S was middle-end, so as slightly larger Incredible S. They lost market because failed to provide top replacement with recognizable name. Regaining lost market share isn't that easy, as losing it. Just good hardware isn't enough. They failed to provide good localization level, they failed to provide good support (like Android 4 updates) etc. And no matter how Samsung does it. To regain lost market you have to be not just slightly better, but noticeably better.

Gaffney said,
HTC have lost their image since the Desire, maybe their focus on the One name will bring a bit of focus.

Wait so HTC lost their Desire in lieu of Focus? What? I like HTC, Samsung is good too both have their merits, noone is perfect..

Not surprising given HTC's lower quality phones they have been releasing recently. I used to love HTC back in the days of the Desire HD, but they went downhill. Samsung on the other hand make cracking hardware.