Samsung and HTC both reported their third quarter numbers in the last 24 hours and they couldn’t have done so to more different results. Samsung continued to blowout with a record third quarter profit that will beat analyst estimates as sales of the Galaxy smartphone continue. The results show that Samsung really has no competition in the global market outside of Apple:
“The mobile-phone number came out very strong,” Kim Young Chan, a Seoul-based analyst at Shinhan Investment Corp., said by phone today. “It again confirms there’s no real competitor out there other than Apple. Samsung’s competitiveness in smartphones will be maintained for a while as the Samsung-Apple duopoly continues.”
Samsung expects competition to increase in the fourth quarter amid concerns of a slowing global economy but will continue to focus on high-value products to support momentum. Samsung shipped 57.7 million smartphones in the third quarter, surpassing the 50.5 million units the company shipped in the previous quarter, a record for a single product vendor. Sales of the Galaxy S III surpassed 20 million units just 100 days after its May debut.
Unfortunately for HTC, their numbers couldn’t be any more different from Samsung showing just how tough the times are for the manufacturer. HTC achieved a revenue of $2.4 billion, down 48% from the same quarter last year and 23% from the previous quarter of 2012. HTC only achieved $167 million in operating profit, which is down an incredible 76% from the same period last year.
The numbers get worse as HTC predicts it will see quarterly revenues drop another 14.5% in the fourth quarter, capping a year HTC would love to have in its rear-view mirror. HTC hopes that China is a positioned as a growth driver for the company as its brand awareness and operator partnerships remain strong in the increasingly vital Chinese market.
For now, it’s unclear what it will take to turn around HTC’s fortunes as the company releases a number of new smartphones including two Windows Phone 8 devices, the HTC One X+ and HTC J Butterfly. HTC’s third-quarter numbers equate to about 4% of quarterly shipments with just 7.3 million smartphones shipped. That’s a 42.5 percent drop on the 12.7 million devices sold a year earlier, when the company held a marketshare of 10.3%.
One thing is certain, HTC and Samsung couldn’t be any more different.