Jul 06 AT 10:00 AM Nick Gray 36 Comments

Samsung projects record breaking Q2 profits as HTC profits take a nosedive

samsung-htc-profits

The best way to know which handset manufacturers are selling devices like hotcakes is by taking a quick look at their books. HTC and Samsung are the two largest players in the Android world, so its nice when things line up and we get to see their quarterly revenue estimates at the same time.

Samsung is projecting profits for Q2 to come in between $5.7 billion and $5.9 billion with total revenue settling in at $40 billion. The profit numbers for Q2 of 2012 could represent an 84% jump from the same quarter in 2011. Unfortunately, HTC’s revenue and profits for Q2 of 2012 don’t come anywhere near Samsung’s projections.

HTC’s unaudited numbers for the quarter show revenue reaching $3.04 billion, a 26.8% drop from last year. HTC’s $247 million in profits took an even bigger hit by falling 57.1% year-over-year. HTC is still sitting with some respectable profits, but we doubt anyone at their headquarters is happy that they are back where they were a little over two years ago.

While there’s a clear difference between Samsung’s growth and HTC contraction, comparing numbers between the two companies doesn’t really give us a clear picture. Samsung is the world larges electronics company that produces a wide range of appliances and home electronics while HTC’s product line is made up by a few dozen smartphones. We’d be interested to see how much of Samsung’s profits are attributed to its mobile division and its smartphone lineup.

Fortunately for us, Samsung and HTC are both making a lot of money. This means we’ll be seeing new Android powered smartphones from them for a long, long time.

Source: HTC Source

Nick is a tech enthusiast who has a soft spot for HTC and its devices. He started HTCsource.com (the first HTC blog) back in 2007 and later joined the Android and Me family in the summer of 2010.

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  • http://www.jaxidian.org/update/ jaxidian

    I just hope that HTC takes their phones and ups the ante by doing a massive all-carrier launch with their next generation. I really wish they had done that with their One X and One S phones but they had far too many exlusives still. Samsung got the GS3 launch right in that regard.

    Either way, hope both of them can continue to fend off Apple’s trolling!

    • http://www.infotainmentempire.com pekosROB

      I’m surprised HTC didn’t make more money, I mean I know they had some legal issues with the One X getting out, but still. Maybe they’ll bounce back the next quarter.

      Can’t wait to get my SGS3 this afternoon! I’m taking the afternoon off from work just to be there! :-D

      • http://htcsource.com Nick Gray

        HTC didn’t make more money because you and millions of other people decided to buy Samsung’s flagship device. HTC will bounce back eventually. Their Q3 numbers will probably show a decrease from last year, but that’s inevitable since Q3 of 2011 was HTC’s most profitable quarter in the company’s history.

        Once they get past Q3, they should be able to post some year-over-year quarterly growth numbers again.

        • http://www.infotainmentempire.com pekosROB

          Good point. Oh, and DAYAM I love my GS3. Smoothest phone ever, I can’t even imagine how it will perform once Jelly Bean is on it.

        • pachi72

          HTC could of had my money if their One X had removable battery and SD card support…

          • Steve

            Bingo

    • android

      I`m sorry to say but after 3 devices that broke i just don`t like htc…. first htc phone of me was a htc wildfire (started to reboot it self after 3 months…) my second htc phone that i use now is a htc desire s (lower part of doesnt or barely works…) and i also have a htc tablet that has a shitty software that isn`t good at all ( android 3.2 with htc sense 1.0 for tablets)

      • android

        i ment 2 devices that broke and one with rubbish software

  • BigCiX

    Samsung made the last two Nexus devices and that’s helped them as well. HTC needs to release an all carrier phone so that it can compete with the samsung numbers. The One X (the phone that I’m currently using) was passed by a large amount of people due to the lack of removable battery and sd slot. I don’t know what they were thinking but hopefully they learner from their mistakes.

    • R.S

      “I don’t know what they were thinking..”

      They were thinking they knew what we wanted.

      Even though I’m sure having the last two Nexuses helped (without SD slots no less), I think having a much more recognizable phone made the bigger difference.

      By that I mean that this year the phone to get is the latest Galaxy phone. It was the same last year. Regardless of which major US carrier you were on, you could buy a Galaxy phone.

      Now granted, like in 2010, each major (US) carrier had a different variation of the Galaxy phone. However, they still had it (their top phone) on all 4 major US carriers.

      Did HTC?

      • http://htcsource.com Nick Gray

        While I personally like having multiple options from HTC, I think they need to launch one true flagship device like Samsung has done this year. They need One device on all four major carriers simply to bring unity to the brand and bring awareness of the device to as many consumers as possible.

        If they want to launch a second mid-range device, they need to postpone the handset by 3-4 months which would still give consumers a second option if they are not willing to pay $200 for the phone with a new contract.

  • kwills88

    The thing that frustrates me the most about HTC is that in order for them to have the best android phones period, all they need to do is make minor adjustments

    1. Better Marketing
    2. Bigger Batteries (people fear HTC phones because they have a history of crappy battery life)
    3. Removable batteries (Samsung found a way to make a phone have a slim profile while still making the battery removable, HTC is top when it comes to design, i am sure they can make that work)
    4. More internal storage and ram (HTC sense eats up so much space).

    You mark those off and HTC will be back at top of the android throne, HTC had the first android phones out, the first nexus device, now it’s trying to keep up with Samsung.

    For 5 years, all my phones but one, has been HTC.

    • Johnathan

      Totally agree w/ number 4. Sense is such a memory hog. Though I did think it was a pretty good UI.

  • Johnathan

    I had a terrible time with my Evo 4G. I had 4 Evos over the course of two years. All four were plagued with “phantoms touches” which rendered them practically useless, or at the very least ridiculously maddening. The worst part about the experience is that I managed to crack the screen on my 3rd one and I had to pay the insurance for a new one. When I got my last one I managed to break that one as well (pro tip: don’t roughhouse with your phone in your pocket). I was so fed up with it that I just decided to wait four months until the SGS3 came out and use my tablet to SMS. I’m not sure if it was just a design fault in those handsets in particular but after a couple of weeks with the Samsung I don’t know if I’ll be persuaded to try another manufacturer again.

  • ndarvishev

    I also hope that HTC will bounce back. It’s not that HTC’s revenue figures bad because it doesn’t make excellent devices. It might be because of the legal issues they had with One X release to mass market, inventory turnover and such. Samsung is a giant corporation that has a full control over the production to supply chain. Don’t forget that Sammy produces CPUs and displays too whereas HTC has to rely on its suppliers like Qualcomm and display manufacturers. This is another advantage for Samsung.
    I really like the One X design over SGSIII, but I must admit that SGSIII has more advanced capabilities and features.
    In this highly competitive market, it is getting very difficult for HTC to gain advantage over such giants as Samsung. But let’s give the small man a chance!

  • omnom

    Before those of you go spewing that nobody likes Sense or they should get rid of sense to compete..
    1. Sense offers differentiability over other manufacturers.
    2. Stock does not mean faster upgrades. Soc/Hardware differences causes the bulk of slow updates and it seems stock enthusiasts keep belting out the same nonsense.
    3. For those of you who hate Sense, how come most of the roms for HTC phones are Sense. You don’t see Samsung phones with Touchwiz roms. Sense is king for HTC phones on xda. Thats because SOME people like sense :O < I know shocking right? http://forum.xda-developers.com/showthread.php?t=1689281 < more people use Rosie than other launchers which is saying a lot.
    The only reason I have stayed with HTC for all these years is for Sense. If Samsung can offer a cohesive ui, then it will be time to migrate but for many, Sense is way better than Samsung has to offer.

  • Jef Cashless

    Please don’t compare Samsung to HTC as companies just because they both make one singular product type. Does HTC make HDTV’s, laptops, washers, dryers, monitors, cameras, microwaves, etc?

    • DROID Sam

      Did you even read the post? The fourth paragraph explains why the numbers really don’t mean much when you compare the two companies. Before you ask the author not to write something, you better read what he actually wrote!

  • MannyThaGreat

    Whats the app in the image?

    • http://htcsource.com Nick Gray

      That’s HTC’s stock app that’s built into Sense 4.0

  • DROID Sam

    Come on HTC, we’re rooting for you! Love my One X and wouldn’t trade it for a SGSIII even if someone wanted to give me two. At least HTC isn’t doing as bad as SONY, Motorola, RIM and Nokia. When it comes to Android, HTC is holding a solid second place position with most other players way off in the distance.

  • sunrise

    HTC, you should have included a removable battery, more RAM, and an expandable microSD slot in your One series. This was your mistake, and now you can sit back and watch people choose the Samsung Galaxy S III over your HTC One X.

    • nebsif

      exactly. I jumped ship over to sammy mainly because of those. The sloppy launch, (broken) multi tasking button instead of menu and all those only convinced me it wasnt a mistake.

      Sometimes when I want to raise my mood I jump over to OneX forums on XDA to see people still cry about wifi, screen defects & crappy sound even 3 months after launch. GS3 had none of those.

  • yankeesusa

    I myself have decided to give Samsung a try after being with Htc for years. The Evo 3d did me in. Had to replace it 6 times and the Evo lte didn’t amaze me too much. Gs 3 will be my next phone. Can’t wait.

  • Nathan D.

    Hopefully HTC will stay alive and well for the coming years and maybe even stop this decreasing trend.

  • inviolable

    Man, consumers really love to go with the front runner. The One series is some of the best we’ve ever seen, but the Galaxy lineup really set the table for Samsung, and people don’t want to look elsewhere. Funny that despite all the revenue, Samsung’s build quality still doesn’t compare to HTC. Actually that probably factors in.

    • cb2000a

      Yes but Sammy doesn’t have the connectivity issues HTC did with the One X. You see one thing a phone should do well I maintain a connection. Samsung does that much better than HTC.

      • omnom

        Not entirely true.
        Samsung is known to make horrible radios. For example, take a look at the Verizon Galaxy Nexus it has horrible reception while the Rezound on the same network has fantastic reception.

  • NeoJesus

    I have an Evo 3D and gf has the Galaxy Nexus. We both went to a dirty, dusty outdoors event. She was on her phone almost all the time, texting, calling, etc. Mine was in my pocket 95% of the time.

    When we get home, I find out that there is dust UNDER MY SCREEN!!

    Her phone, is 100% dust free, as it should be.

    I don’t know how the hell dust got UNDER my screen but it is no impossible to clean unless i remove the touch digitizer, which is a PITA from what I’ve read!

    Later on, we sent her phone in to get Liquipel’ed. They said that Samsungs are made to be AIR TIGHT!

  • RAPTOR

    Only morons, salespeople and some developers could be happy that US lost more from these figures then actually gained. Probably a half of mentioned revenue or $20B a quarter was taken from US skyrocketing trade deficit. From Apple and Motorola and Dell. This will return back to US as more competition, decreased pay and lost jobs.That’s a whole yearly NASA budget you dumboss. Salespeople have no clue and moral or care about anything besides their on pocket. All here are aware of course that this site also runs the shop, right?

    • sansenoy

      Everyone’s just playing by the rules, Chicago School of Economics style, you made your own bed buddy…

  • AWRYHaerh
  • Matt

    I’m sure it has nothing to do with locked bootloaders, non removable batteries and no sdcard option..

    Keep giving consumers less choices HTC..Its clear thats what they want.

  • Chris

    All of you are crying for SD slot and removable battery.. seriously get over it… I am fine with a non removable battery.. the battery performs so much better…. SD? Meh.. I’m cool not having it since there are things like DropBox or Google Music… What else would you need more space for? ………. all in all whatever

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  • SimLash

    HTC is just now doing what Samsung took the initiative in doing (and what Motorola and LG still haven’t done yet). Samsung has a very well known brand–Galaxy S. HTC just started a brand (One X/S) and they may not continue it.
    The Galaxy S phones are actually very good devices as well–great power and software. It’s no wonder Samsung Galaxy phones outsell iPhones when iOS still looks like it did 4 years ago. Even my G2X looks newer than an iPhone 4s