HTC stuck with inventory, weak Q2 revenue

HTC stuck with inventory, weak Q2 revenue

Summary: HTC joins Nokia and RIM in the struggling smartphone maker club.

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TOPICS: HTC
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Add HTC to the list of struggling smartphone makers.

While most eyes are the Research in Motion and Nokia situations, HTC continues to put up worrisome financials.

The company said that it will deliver second quarter revenue of NT$91 billion with 27 percent gross margins. Analysts were looking for revenue of NT$103.6 billion and the second quarter outlook negates HTC's previous optimism.

HTC added that its revenue outlook includes a charge of NT$2.6 billion to "facilitate the clearance of channel inventory for certain products shipped from last year." Without that charge, HTC revenue would have been NT$93.6 billion. In any case, HTC missed its sales targets dramatically.

One reason HTC fell short was a U.S. Customs battle with Apple. HTC imports were held at the border and sales fell. Ultimately, HTC imports resumed. It's unclear whether the HTC customs issue will be permanent damage.

Meanwhile, HTC confirmed that the U.S. International Trade Commission has begun an investigation. The company said:

With respect to the Finland based handset maker, Nokia filing US International Trade Commission (US ITC) investigation against HTC Corporation, HTC confirmed that US ITC has instituted the investigation of this case on June 04. HTC does not comment on cases that have already entered legal proceedings.

Topic: HTC

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13 comments
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  • So, do we declare HTC Dead?

    Rumors of RIM and Nokia's imminent demise have been based on the same circumspect data points. So, should we now declare HTC dead? And then blame it on Android is a bad platform?

    Of course not....but then the folks who declare Nokia DOA for its Windows Phone 7 support are just as baseless.
    Your Non Advocate
    • One notes two things

      Which are more important than your land of hope and glory.

      HTC was boinked by Apple and win/lose/draw in the end it has to hurt.
      HTC sells WP7, which apparently haven't helped them a whole lot. Maybe in time, but as RIM and Nokia are pondering, how much time have they got?
      ego.sum.stig
      • WP7 sales didn't hurt them

        while Android unit sales, or lack of, definately did.
        William Farrel
  • Dying?

    Perhaps they are in the dying phase. Hard to compete against the Apple, Samsung, and Google/Motorola juggernauts.....
    itguy10
    • Google/Motorola juggernauts?

      LOL! THAT was a good joke!
      William Farrel
    • Moto not so much. Their marketshare is falling off a cliff.

      They are making WP look stellar. They've had massive failures with razr and bionic and they seem to have nothing coming in the new idea department. And google a year later still has ics in the single digit market share of just android phones, a complete and total EPIC FAIL on their part.
      Johnny Vegas
  • HTC sucks

    If they would add decent memory and sd slots to phones they may be able to climb out of it.

    When you offer phones with not enough memory to download and install apps HTC Wildfire S what's the point? The HTC one is great but no SD slots. The HTC sense is pretty good.

    All they need is more internal memory and sd card slots and I will be back to get one.
    Randalllind
    • htc one

      I love my One S the 23 gb of free cloud is nice and I don't miss the ad slot. The Iphone has no sd and its the most popular phone put there. The camera on the one is amazing and I enjoy it highly. The sense 4.0 ii is the best I have seen. I got rid of my iPhone for it and I amglad.
      vwrocker85
      • 23GB Cloud?

        So who is offering 23FREE GB of cloud? Grandfathered SmartDrive?
        mike@...
  • Seems to me HTC was not all that long ago a darling of the

    smartphone/android world. How fast things change what has it been months already since that status of "darling"?

    Pagan jim
    James Quinn
  • And this is why units shipped is a stupid

    way to measure a product's success.
    baggins_z
  • HTC's struggling to compete with Samsung

    They launched the One X ahead of the S3, but failed to convince AT&T to put too much marketing muscle behind it. Now, once the S3 launches, consumer focus will completely shift away from HTC. I think they were right earlier, they need to focus on emerging markets.

    http://www.tech-thoughts.net/
    sameer_singh17
  • Another possible reason...

    People may just be satisfied with their current HTC phone and don't see a need to spend any $$$ just because they've made the screen another .25" larger or reduced the phone's thickness by 1 nanometer. That's Apple's marketing gimmick. I've been running my HTC EVO 4G for about 3 years now and it's still going strong running Fresh OS (I did have to replace the screen once when my wife dropped it, but I did that fix myself). Best phone I've ever had (for all you Apple fanboiz, I have an iPhone 4 for work and I hate it).
    darthmongo