HTC's Financials are Getting Worse; Things Look Very Grim and Investors are Bailing

[dgstorm]

Things are looking pretty dire for HTC, the former darling of the Android smartphone industry. Their newest financials were revealed and things have gone from bad to worse. Our previous report indicated that profits had slipped by a large margin, but now their revenues have dropped significantly as well, and investors ran for the hills.

HTC's profit dropped by 58% in the second quarter, as we reported previously, but in the third quarter, not only did they lose profit, they also lost 23% of their sales and their revenue dropped by 45%. Because of these grim numbers, investors have been more than skittish. HTC's stock price has dropped by 50% over the year, and shaved off over $1 Billion dollars from their market cap.

They are trying to offset these massive losses in Europe and the United States by moving into the growing Chinese and Indian markets, but their gains there have not offset any losses yet. The main problem isn't that they make poor products. The HTC One series, and especially the One X, have been getting excellent reviews across the board. The problem is branding presence. Right now, Apple's iPhone and Samsung's Galaxy series are dominating the landscape in terms of consumer attention.

Could HTC be the next big company to start crumbling like RIM and Nokia? What would it take to turn things around?

Source: HTCOneForum via BGR

 

[LoudRam]

That stinks. I've owned nothing but HTC's and I loved them all. That's going to be really lame if the only choice I have for a phone is Samsung or Moto. I'm really not crazy about either one of those brands.

Sent from my HTC Rezound using Droid Forums

 

[[SP]JESTER]

If they updated their products they might not lose people

 

[cellhead]

That stinks. I've owned nothing but HTC's and I loved them all. That's going to be really lame if the only choice I have for a phone is Samsung or Moto. I'm really not crazy about either one of those brands.

Sent from my HTC Rezound using Droid Forums

Agreed, love my Rezound!

 

[dgstorm]

I have to agree. I think this is sad news. But, we can't count them out. Perhaps they will figure out the magic formula to get back in the game!

 

[johnomaz]

When the Thunderbolt was new, my wife got one and I have to say I never liked the device. I think SenseUI is worse than Blur. The feel of the device isn't good in my hand. The only thing I like about the TB is the kick stand that is built in. Same goes for current Moto phones. I'm not fond of the RAZR look or feel. My S3 is my first S3. Never used one before either and I'm beyond happy with it and I preordered it. I had no idea if I'd like it and I dont' mind returning a phone but I liked it as soon as I held it. Not every company will survive. There will be successful ones, mediocre ones and failures. HTC just seems to be going down the failure road.

 

[LoudRam]

I have to agree. I think this is sad news. But, we can't count them out. Perhaps they will figure out the magic formula to get back in the game!

Maybe if it gets really bad someone that knows how to market a great phone will buy them out. That's what is killing them. The Rezound is a top tier phone even now a year later, it can easily hold it's own against almost any phone out there but it was marketed as an overpriced mp3 player.

 

[cybertec69]

Maybe if it gets really bad someone that knows how to market a great phone will buy them out. That's what is killing them. The Rezound is a top tier phone even now a year later, it can easily hold it's own against almost any phone out there but it was marketed as an overpriced mp3 player.

Dito.

 

[tjk629]

How did HTC fall so far?

 

[cobravnm13]

How did HTC fall so far?

Apple.

Sent from my 3rd reincarnation of the ever-so-lovable Droid

 

[MissionImprobable]

What did people know the HTC Thunderbolt as? The Droid Thunderbolt. What did people know the Rezound as? Nothing, because it was horribly marketed. They have a lot of love from the modding community, but if I asked the average person what they think of HTC phones they probably couldn't name a single one. Sad that they've both failed there, as well as upsetting some fans with lackluster update timetables and locked bootloaders when they were promised to be delivered unlocked.

 

[xeene]

droid thunderbolt? first time i'm hearing that. htc has nothing that makes it stand out from other phone manufacturers and buyers agree with their pocketbooks. beats > gimmick. battery life = none existent. sense = insignificant.

watch samsung buy out htc.

 

[LoudRam]

htc has nothing that makes it stand out from other phone manufacturers and buyers agree with their pocketbooks. beats > gimmick. battery life = none existent. sense = insignificant.

watch samsung buy out htc.

80% of the buyers don't know anything about the phones they buy except for what the VZ sales staff tells them. And we all know how reliable that information is. They buy what the so called "experts" push on them not what is the best phone. HTC 's biggest problem is no marketing not bad phones. You've seen it in here. The Rezound has the best camera, best screen, great radios, solid build quality (all three of my HTC phones were solid phones), and the fewest bugs/issues of the top phones.

 

[kparks]

80% of the buyers don't know anything about the phones they buy except for what the VZ sales staff tells them. And we all know how reliable that information is. They buy what the so called "experts" push on them not what is the best phone. HTC 's biggest problem is no marketing not bad phones. You've seen it in here. The Rezound has the best camera, best screen, great radios, solid build quality (all three of my HTC phones were solid phones), and the fewest bugs/issues of the top phones.

i totally agree.....All they need to do is say its got the best camera in a mobile phone a brilliant 720p hd display, htc sense with a industry leading processor to make surfing the web facebook and twittering a seamless experience. all packed into a polycarbonate unibody to withstand the toughest conditions.......... and featuring beats audio.... but every phone htc has all u see is the whole commercial with some guy walking around listening to music WTF WHO CARES!!! THERE HTC I DID UR WORK FOR YOU NOW GET YOURSELF OUT THE GUTTER WERE UR MARKETING GOT YOU IN THE FIRST PLACE!

 

[tjk629]

What did people know the HTC Thunderbolt as? The Droid Thunderbolt. What did people know the Rezound as? Nothing, because it was horribly marketed. They have a lot of love from the modding community, but if I asked the average person what they think of HTC phones they probably couldn't name a single one. Sad that they've both failed there, as well as upsetting some fans with lackluster update timetables and locked bootloaders when they were promised to be delivered unlocked.

The EVO line is highly regarded over at Sprint, and I would say the Incredible line is for Verizon. Well, maybe not anymore since the Incredible 2/LTE aren't really pushed like the first was. The EVO line is still strong at Sprint.

I do agree that HTC doesn't make universally known phones. It's not like Motorola's DROIDs or Samsung's Galaxy line. Maybe the One line will help HTC out when the second generation comes. The Galaxy line didn't really start booming till the GS2 hit.