HTC Issues A Warning, Things Aren’t Looking Good For Q4

Today has generally been a very good day for Android phones mostly due to news of the continued growth of the Android ecosystem  So far, we have seen that Android tablets have been able to grab 41% of market share for the third quarter, which was somewhat surprising due to Apple’s dominance with their iPad’s. Next Samsung reported some amazing statistics with their third quarter profits, which has set the record for smartphone shipments and has also made themselves the worldwide leader in terms of smartphones. So yes, it has been a good day for Android fans, but what we’ve heard from HTC is definitely not all bells and whistles. HTC should be looked at as a warning and example as to how fast things can switch around. That said, you should already be guessing that HTC isn’t doing so well.

HTC issued their warning Friday, indicated that the Taiwanese company is expecting further declines in operating profit margins and revenues during the fourth quarter. HTC unveiled their third quarter financial results, and turned out to be pretty disappointing. The results that they had reported are contrast to HTC’s previous spot as one of the top five smartphone manufactures in the world, along with their former position of being Apple’s main rival in the United States market just two years ago. Things have really gone downhill with HTC as you can tell, and that could partially because of how well Samsung is doing. Samsung reported today some amazing financial, and you can’t help but wonder if they hold many of the customers that HTC once had. Surely customers have gone from a wide variety of companies, but I can’t help but think Samsung’s success (and possibly Apple’s) has had at least a little bit to deal with HTC’s revenue decline.

According to HTC, they are expecting their operating profit margin to drop to only 1%, which is the lowest it has been in nearly a decade. Meanwhile, the Taiwanese based company is anticipating revenue in the fourth quarter to fall by %41 compared to the same period just a year earlier. These latest announcements and projections are a whole lot worse than analysts have previously expected. This is all pretty sad as HTC has made some pretty good devices such as the HTC One X.

Do you think that HTC is able to turn this around, or do you think HTC is just bound to get worse as time goes on? It really hasn’t been a good year for HTC as they have had some other disappointing announcements throughout the year as well. Hopefully when the next batch of HTC smartphones release things will begin to look up for the Taiwanese company. Although, their devices may be lesser known with the Samsung Galaxy Note II releasing around the same time as well (not to mention pre-orders for the handset have begun as well). I guess this is where “quietly brilliant” comes into play.

Any thoughts on their most recent announcements concerning the third quarter and what they are expecting for the upcoming fourth quarter? Let us know in the comments below!

source: talk android

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