Jan 07 AT 3:12 PM Nick Gray 42 Comments

HTC’s Q4 revenue takes a nose dive as profits hit a nine year low

peter-chou

If HTC were given the option to erase 2012 from the history books, we’re sure they would do it in a heartbeat. HTC’s Q4 numbers reveal that the company managed to barely pull in 60 billion New Taiwan dollars, a 41% year-over-year drop. Unfortunately, that’s the good news. On the profit side, HTC saw its profits shrink by 91% to 1 billion New Taiwan dollars ($34.4 million) – the lowest they have been in nine years.

It’s hard to identify one clear cause of HTC’s decline, but it is clear that the company needs to be something completely different in 2013 if they intend on changing the tides. In an interview last week, Peter Chou stated that “the worst for HTC has probably passed,” but his careful choice of words shows his hesitancy in declaring that HTC will be back on track in 2013.

Hopefully, the introduction of the HTC M7 will be the first step in getting HTC back to where the company needs to be in order to compete with Samsung and Apple. If the rumors are true, the HTC M7 will be picked up by all four major US carriers, which will allow HTC execute a focused marketing campaign and expose the device to as many consumers as possible. The Q1 launch would also give HTC an advantage over Samsung, since the device would be available for 2-3 months without a direct competitor.

We hate to see HTC in such a bad spot, but maybe this is exactly what the company needs.

Source: WSJ

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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