HTC Q3 misses targets, continues to quietly sink

HTC Q3 misses targets, continues to quietly sink

Summary: The Taiwanese phone maker continues to sink quarter-on-quarter as the firm fails to compete against its rivals in the smartphone space.

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HTC's third-quarter earnings paints a dire picture for the phone maker's ongoing profits, as the Taiwanese giant once again performs below analysts' expectations and company forecasts.

The world's fifth largest smartphone maker said today its third-quarter profit fell by 79 percent year-on-year as the firm continues to struggle in the face of its competitors' devices and sharper sales.

HTC reported third-quarter total revenue of NT$70.2 billion ($2.39bn), down from NT$91 billion ($3.04bn) in the second-quarter -- a drop of more than 20 percent -- and down from NT$135.8 billion ($4.5bn) a year ago -- dropping by almost one-third at the same time last year.

The firm said in August that it expected its third-quarter revenue to be in the region of NT$70 billion ($2.38bn) to NT$80 billion ($2.73bn), compared to around NT$91 billion in the second-quarter.

Analysts had expected the company to earn around NT$84 billion ($2.9bn) during the third-quarter.

All in all, the firm kept quiet on everything else. HTC's third-quarter of 2011 was healthy and record-breaking for the firm, but since the phone maker has struggled to keep up with the competition after a relatively successful 2011. However, October came and went and the iPhone 4S powered through the smartphone market and Samsung stormed even ahead of Apple with its range of Galaxy devices.

Topics: HTC, Smartphones, Tech Industry

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4 comments
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  • HTC Misses Targets All Around

    HTC has been missing promised and projected targets all around. Numerous promised updates to phones and financial targets as well. Maybe they are connected?

    I seriously doubt I will be purchasing another HTC phone after the entire debacle that was, and still is for many, the HTC Thunderbolt. Bugs followed by updates that fixed, then created bugs followed by missed updates, excuses, and silence. It seems they have a horrible business model as they just keep cranking out new phones with no real new features over ones that were released barely months before. Of course Verizon is no saint in the update fight, either, causing many of the delays and when they do not delay, they aren't testing well enough before releasing an update. It's sad when 4 people in my family have the same phone, but 3 of them are running different versions from each other since updates were released, then almost immediately pulled due to bugs. Other manufacturers suffer from this as well, but the Thunderbolt seems to be one of the the absolute worst.
    Graywolfman
  • Profit Margin?

    What was HTC's profit margin? It was 8% in the previous quarter, and looked to be 7% this time.

    Compare companies in the Windows business: less than 2% for Acer and Lenovo, and of course HP losing money hand over fist. Android is the best business to be in right now.
    ldo17
    • To Answer My Own Question...

      ... more details here: http://www.neowin.net/news/htc-releases-q3-earnings-net-profit-down-at-137-million

      In particular, note their net margin is 6%, down from 8% the previous quarter. Compare companies selling Windows PCs: Ages and Lenovo at under 2%, and of course HP losing money hand over fist. Android is clearly a much better business to be in than Windows.
      ldo17
    • Just Motorola, LG or Sony...

      Android is keeping their profit margins sky high.
      Bruizer