HTC Fourth Quarter Profits Drop 91% Year-On-Year Earning Them Only $34 Million

Hopefully HTC CEO Peter Chou was right when he said that the worst is over for HTC, because HTC has suffered a terrible loss in Q4 of 2012.

HTC’s un-audited October-December net profit was a measly $34.48 million, which is a 91% drop down from $380 million from Q4 of 2011 and $134.48 million in Q3 of 2012.

HTC’s Q4 revenue plummeted 41% to $2.07 billion, which was what 23 analysts at Bloomberg had estimated it would be back in October.

Analysts predict that HTC will still have it rough in 2013 due to its marketing being extremely behind that of Apple’s and Samsung’s.

Birdy Lu, analyst at Daiwa Capital Markets, stated,

“Q1 will be better than Q4 as Q4 was really bad, but full-year speaking, HTC’s EPS might not have bottomed in 2012 if its flagship M7 sales disappoint this year. The new phone could have a first-mover advantage for one to two months before Samsung launches its Galaxy S4 in April, but in the long run, it’s difficult to beat Samsung’s phones.”

Hopefully HTC’s new M7 lives up to the hype. A lot is riding on the M7 for HTC. They’re going to need it to be in order to dig themselves out of this rut they’re in.

What are your thoughts on HTC’s plummeting profits?

Reuters

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