HTC revenues plunge by half, hitting three-year low

HTC revenues plunge by half, hitting three-year low

Summary: The company has high hopes for HTC One, while its February revenues slid by 44 percent compared to last year.

TOPICS: HTC, Hardware, Mobility

HTC's monthly sales plunged in February, hitting their lowest levels since February 2010.

The Taiwanese handset maker's revenues for last month were NT$11.3bn ($383m), down 44 per cent on the NT$20.3bn it posted in February 2012. 

It's a similar picture to the company's recent fourth quarter results: HTC's revenues for the period were NT$60 billion, down from NT$101bn the year before. HTC warned last month that revenues for the first quarter of this year could be lower still, at NT$$50bn.

The company enters 2013 with hopes pinned on its new flagship device, the latest HTC One model, which has been met with positive reviews, including winning "best new handset" at last week's Mobile World Congress awards.

2013-03-06 01.55.32 pm
HTC One. Image credit: HTC.

That smartphone, which is yet to ship, may offer some hope for the company, but reviewers similarly praised earlier models of the HTC One, released last year. The HTC One family appeared to have little impact on revenues for 2012, with HTC consistently posting year on year monthly revenue declines, between 16 and 60 percent.

HTC's Windows Phone line up also includes the 8X — one of a handful of new devices from manufacturers including Nokia, Samsung and Huawei running the OS — but it seems the company may need something more immediate than Microsoft's platform can offer. Market research firm Kantar noted last month the 8X had made inroads into the UK market recently, with the device now the third-placed Windows Phone handset. While that's some progress, it remains a fairly small fish in a pond far smaller than either Android's or iOS'.

There may be better prospects for the company in the mid-range. HTC's cheaper Desire V series (which runs on Android) helped HTC grow its shipments dramatically in China — the territory that many mobile makers are pinning their hopes for the future on — last year for example, where it outperformed all international rivals according to figures from analyst firm Canalys. However, it wasn't enough to offset the declines in revenues HTC posted throughout 2012.

Competition amongst local manufacturers remains fierce in China, where ZTE, Lenovo and Huawei all trail Samsung, according to Canalys.

Topics: HTC, Hardware, Mobility

Liam Tung

About Liam Tung

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

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  • I still have hope for HTC

    They make very good phones. I know some may despise the customizations that handset makers apply to Android but I don't. I don't want to root my phone, I want to use my phone and some of the features they have added have been the ones I use the most. Like everyone else on this site, I work in IT but when I go home, I don't want to 'work', I want to play. I want a break from the work aspect of IT. Their phones have held up well, I love the interface, and they seem to update at a reasonable pace. I hope the new phones are a bigger success. I thought the addition of the tiles was a smart move. It was like combining aspects of the new Windows phone with Android so you can have both now.
  • The fix is simple

    Atop listening to Big Business and Steve Jobs tapes... Start listening to your customers!
  • Dump Windows

    Seems like their problems started as soon as they embraced Windows Phone. Avoid the Microsoft curse!
  • their only problem

    is marketing, and they should produce more mid-range phones to cater to all categories.
  • This can't be true

    I'm told that simply selling Android phones is the key to success.

    Also, remember that Samsung also sells Windows Phones as well as Android... and they're making money hand over fist.

    Could this have something to do with something HTC is doing wrong?
    Michael Alan Goff