HTC Profits Fall 79% As Competition Continues To Pressure Company

Early Monday HTC reported its lowest quarterly profit since 2006 as its market-share continues to diminish against greater competition. The 79% decline shows HTC struggling with the fourth consecutive quarter the company’s profits have been down year over year. The Taiwanese company did turn a net profit of $133.2 million on total revenues of $2.4 billion, but those numbers are starkly different against last years $636.5 million profit on $4.64 billion in revenue.

It was just back in 2010 when HTC was the biggest smartphone manufacturer using Google’s Android platform, only to have Samsung overtake HTC in 2011. Analysts don’t see the picture getting any better for HTC in the fourth quarter as it faces increasing competition from Samsung, Apple and even Nokia’s own Windows Phone launches.

The Wall Street Journal reports that HTC’s declining market-share in the US is forcing the company to reconsider its US strategy and focus on other markets.

HTC does hope that the launch of both the Windows Phone 8X and 8S, along with the updated HTC One X+ will begin a turnaround of fortunes. With device exclusivity on the One X+ and Windows Phone still struggling with single digit marketshare, I’m not overly positive these are the right moves HTC can take to return to former glory.

How about you?

Wall Street Journal

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