HTC Posts Q2 2012 Financial Results, 57.8 Percent Net Profit Drop

HTC announced their second quarter 2012 financial results amidst a 57.8 percent net profit drop, which still shows the company's financials improving over the first quarter of this year. Combining weaker than expected European sales, along with customs issues in the US played a large role in financial numbers that are still well down from the same time last year. Consolidated sales from last month totaled T$30 billion, unchanged from May and a 33.4 percent drop compared to June of 2011.

Concerns over the continuing economic downturn in typically strong European markets are expected to further dampen HTC's short-term financial outlook. HTC's numbers are starkly different than one of their main rivals for global marketshare in Samsung, having posted just posted earnings of $5.9 billion last quarter. HTC remains hampered by having smaller scale and margin than competitiors such as Samsung or Apple. HTC will have to continue driving its One series line of devices and their highlights if they want to steal thunder away from heavy-hitters like the Samsung Galaxy S III. Cearly, that's not going to be easy.

Reuters

 

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