HTC reports $804m revenue for August; still 'quietly sinking'

HTC reports $804m revenue for August; still 'quietly sinking'

Summary: Another month of revenue decline, HTC is "quietly in trouble" as the Taiwanese firm struggles to keep its head above the water in the mobile market space.

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"Quietly brilliant," goes its tagline. Shouldn't that be, "quietly in trouble?"

HTC announced on Thursday said its August sales figures totalled $804 million (NT$24 billion) down from around $835 million (NT$25 billion) in July; $31 million less on the month prior.

Screen Shot 2012-09-07 at 09.20.05
HTC smartphone running Windows Phone software. Credit: Josh Miller/CNET

If you haven't kept up to date with HTC, the firm is in dire need of something -- anything -- to get the company back on its feet again.

Since January, the firm has reported consolidated revenues of a meager $6.98 billion (NT$207.9 billion). The firm's second-quarter earnings alone just over two months ago reported a 57 percent decline in net profit, from $585.9 million a year ago to $247.7 million at the last quarterly count. 

It's depressing to watch. It's watching a very slow moving car head towards a cliff edge.

Samsung, LG and Apple continue to dominate with a collective 60 percent of the U.S. market, according to the latest comScore figures. Samsung alone has a quarter of that pie alone. While HTC remains in the top five mobile manufacturers' table, it gained only marginally by 0.4 percent to 6.4 percent of the overall U.S. market.

The truth is: since RIM's falling off the edge of the edge of the top five table earlier this year, HTC rose up the ranks. It wasn't through sheer hard work or exception sales on HTC's part, it was only by chance that the decline of a smartphone rival would result in the table standing switch.

One of the likely reasons for August's revenue hit may not actually have much to do with phone sales at all. comScore figures suggest a marginal increase may have brought in some revenue, but investing elsewhere and in other companies may have taken the brunt of it.

Last month, HTC was hit by the OnLive restructuring and lost out $40 million for the privilege of investing. On the same day, the firm injected $35 million in Magnet Systems in return for a 17.1 percent stake -- or around one-fifth of the social and cloud enterprise applications firm.

HTC generates most of its cash from sales of Android-based devices, but keeps a diverse range of devices and operating systems in a diversity push to appeal to the wider audience. 

However, HTC is expected to announce a Windows Phone 8 handset later this month.

"Our plan is to go big on Windows [Phone] 8," said Jason Mackenzie, HTC's president of sales and marketing, to Reuters, but warned the firm would be in for a rocky ride against bigger rivals in the Windows Phone space, particularly Nokia. 

Topics: HTC, Smartphones, Tech Industry, Windows

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8 comments
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  • Doesn't HTC also create Android Phones?

    Also Samsung does W-Phones along with Android but is earning money, what could be their difference?
    TheFilipinoFlash
    • Maybe hit devices like the Galaxy S3?

      Also, here in countries like India for example, Samsung's devices are priced so much better at all price points that not many prefer HTC over them. HTC has had great devices like the One X or the Sensation, but competing devices like the Galaxy S3 or Galaxy S2 have dwarfed sales of those HTC devices (not dwarfed, but you get my point). Even in the WP world, Samsung's pricing on devices is quite good.
      Again, I'm not a very bright person, so those might not be the reasons at all. :|
      addicted2088
      • Then the WP7/8 Picture on this blog entry by Zach...

        ...can set off a negative message for WPhone OS. ^_^

        but... you may have a point there.
        TheFilipinoFlash
  • Still Expecting To Make 7% Net Profit

    Compare the PC business, where Acer and Lenovo reported less than 2% net profit in their last quarterly reports, and HP lost a whole lot of money.

    Mobile is still the business to be in. And the best part of mobile to be in is Android. HTC is still doing way better than the entire PC business.
    ldo17
    • 7% is good? So what do we think about Apple's profit margins if 7% is

      good? As I've always said market share means little... PROFIT means everything or close to it)

      Pagan jim
      James Quinn
  • Meagre revenue in billions.

    Really, a revenue measured in billions is meagre is it.

    They must pay you too much at ZDNet then if you think billions of dollars of revenue is meagre.
    Bozzer
    • Ignorant comment

      The finances of a company has to be analized in COMPARISON to it´s previous performance and to the competition. No real world sallary could make that kind of revenue meagre.
      Rafael Faleck Rejtman
  • Dump Windows Phone

    That could save them $500 million alone.
    Troll Hunter J