HTC’s Q4 2012 Income Hits a 9 Year Low


HTC’s continued trouble in the market has been discussed on several occasions. And each time, the stats just keep falling for the Taiwanese maker. Only a few months ago, there were reports that the company had performed poorly compared to how much it did the year prior to that. This has been the trend over the course of the years, where the company was at one point the top manufacturers of smartphones. That was until Samsung swooped in and took away all that marketshare away from them. One might argue that the better product won, but the last couple of years have been nothing short of unfortunate for the company.

But we won’t dive into that now, as there’s enough trouble in the current situation for the company. It is now being reported that HTC’s last reported earnings were the lowest in about 9 years (since 2004) with income of only $34 million (NT$1 billion). To put in perspective the enormity of this loss, in 2011 the company made revenue of $375.8 million (NT$10.9 billion) which is more than 10x of the revenue made in the final quarter of 2012.

Things seem to be getting grimmer and grimmer for the Taiwanese manufacturer, and we’re not quite sure as to how the company plans on getting up on its feet now. It’s very likely that HTC is heading down the Motorola road, where the company’s diminishing sales led to them being acquired by Google in Q3 2011. Let’s hope this is all a temporary setback for HTC and it has what it takes to make a comeback in the mobile arena. With rumored droids like the HTC M7 in tow, we figure things should become a lot less painful for the company. It’s hard to pinpoint one area where the company went wrong, because honestly I can’t think of anything. But the sheer dominance of Samsung in the industry has left little to nothing for other OEMs. This is what made HTC take the mid-ranged and low end market segment seriously. So perhaps focusing on all areas of the market would be beneficial to a great extent for the company. Let’s hope the company learns from its past mistakes and gives us something to cheer about in 2013, starting with that mysterious M7 smartphone of course.

Source: HTC
Via: Pocketnow