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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  • LittleGreenDude

    They need a major phone on all the carriers. Advertise the heck out of it, especially their amazing build quality, and boom, they have a hit.

    • alexanderharri3

      Exactly. Note: I know a guy from over near India, and arriving in the states, “Android” wasn’t what an Android phone was – it was “Do you have a HTC”, meaning “do you have an Android?” vs his blackberry.

      • LittleGreenDude

        Wow, that is interesting. Most people I meet here in the states barely know about HTC, if at all.

        • ihatefanboys

          Must not know a lot of people. Lots of people have known about HTC since they hit the scene with the first Android phone, the G1 from T-Mobile.

    • romy134

      How come everyone knows this but them? One Flag ship phone only on AT&T? come one now..

    • Hom0ncruse

      final nail in the coffin for HTC

    • zerosix

      “Hopefully, the introduction of the HTC M7 will be the first step in getting HTC back to where the company needs to be”
      The same things we’ve heard with HTC One X and Sensation. Hopefully, HTC manages to change itself so that they become a HPC – High Profit Company.

  • lequonrobinson

    If HTC keep on going down this road they are on soon everybody will be like your remember HTC who is that

  • ibap

    Too bad. Their better phones are built like a tank. But maybe that matters less when people keep replacing phones so quickly.

  • alexanderharri3

    I feel every HTC phone that shows great initial specs and promise falls short the second its due for a software update – something that HTC was once great at but now falls short. Samsung is upgrading GSIIs to Jelly Bean…They’re older than the Rezound.

    Great hardware, but always big pitfalls (ie battery size)

  • Vance

    it just shows the powerand importance of mainstream marketing campaigns. I just helped my friend set up her s3 and I just prefer the build quality of HTC to Samsung. Plus IMO sense 4.x beats Touchwiz. I just wish HTC had the muscle to bombard the largest market segment, those who just want a sexy phone with an air of exclusivity, but aren’t really “techy”. Samsung is waging a brilliant war over the “iSheep” demographic, I wish HTC would follow suit. Unfortunately I just don’t think having a revolutionary phone launch at an ideal phone is going to be enough (just ask the nexus one)

    • Vance

      *at an ideal time*

  • renyo

    When u say Iphone, it is Apple… When u say Galaxy, it is Samsung… When u say Lumia, it is Nokia… What do we say for HTC? Desire? Sensation? One? Droid? People don’t relate to a company without a device they can remember… I think HTC really has to work on keeping a series name… Not changing it with every model… Oh and good marketing too…

    • pjamies

      I totally agree, and they could have 2 or 3 specific names to suggest lines of
      phones.
      But when it comes down to it, they need to build high-end quality phones with
      specs that users want.
      They should also throw in a Nexus phone, as all Nexus phones to date do well
      in the market place.
      Limit the number of phones you build. Build quality phones with great specs and
      advertise the hell out of them!!
      Update your phones!! Users want the latest and greatest OS’s, pissing off your
      customers by little to no updates, just makes them choose another mobile company
      next time they purchase a phone.
      Oh ya, do NOT do any exclusive deals with carriers! Instead, flood the market!

    • scubabum

      Agree. They need a better marketing team to promote the brand.

    • Brian

      When I say HTC, I say piece of crap with horrible customer service. It is no surprise they are seeing such terrible results. After purchasing the HTC thunderbolt and experiencing htc’s less than remarkable customer service, I will never buy another HTC product again and never recommend an HTC product to anyone. I would not be surprised to see 2014 as the year they go bankrupt or get bought out.

  • jamal adam

    They have to start fresh and leave all the things that didn’t work behind and focus on what needs to be improved like more carrier releases and marketing. I know they can do it, it’s just a matter of getting it done.

    • http://htcsource.com Nick Gray

      By carrier releases, do you mean more carrier buy-in on single devices? If they release more devices rather than focusing on a single flagship model, it will hurt the company’s limited marketing budget.

  • Ardrid

    Really hoping HTC turns things around. Would hate to see one of the better Android OEMs disappear. They really need to focus their efforts on a single device. Make that device the best it can possibly be, price it reasonably, get it in the hands of all the major carriers, and advertise the hell out of it. That’s one thing that Apple has always done right and it’s the one thing that Samsung is doing right.

  • David Sumner

    Is anybody actually surprised by this…? I am (was) a big fan of HTC from the touch pro / G1 days an my current phone is a HTC phone but to be honest they really fell off big time. In may way they are like Apple to me now, they make a good premium phones but they still fail to impress me like Samsung does now.

  • Paul

    Yeah I hate to see HTC suffering. I was using smartphones before smartphones were cool. First Nokia’s symbian phones then on to Windows Mobile 5/5.5/6/6.5 phones, and they were all HTC phones. My first Android phone, the Nexus One, was an HTC phones. Android big break, their first consumer phone, was made by HTC. I think HTC has made some mistakes lately and they need to make ammends and fix it and move beyond. I think their no keyboard, no removable battery, no microsd, even their no D-Pad, strategy sucks; too Apple like. I wish them the best and hope to not count them out, Android needs all the power players it can get, not just Samsung becoming the next Apple. Healthy competition is best for the consumers.

    • amIT29

      yes htc has to give features like expandable sd card and not just ape apple ..more so when its biggest competitor samsung is already giving all such features.

  • Ty

    Well for starters they need to be on all carriers and offer removable battery and sd card slot. This is the main reason I left HTC for Sammy…

  • TURDxSANDWICH

    I understand profits are down and its a poor trend the last couple years, but this still says they were profitable in 2012, right? They still make quality phones and are in business. They’ll figure out the US market soon enough. Maybe with the M7, but likely with whatever their next phone will be. Samsung didn’t hit it huge until the SGII.

  • http://www.focuszonedevelopment.com Homncruse

    I’ll buy an HTC phone as soon as they make one that is actually all-around GOOD, not “this phone is good at x, y, and z… but if you want a or b, you’ll be disappointed”.

  • killrgummibear

    they never learn. stop forcing sense on everybody (make it an option not mandatory), support the devices you have (quit forgetting the devices that came before you “next big thing” they’re still being used and deserve attention too), advertise the f__k out of your phones (not just vague commercials that hardly show the phone), keep us up to date (stop leaving us behind and push to get those updates out there as quick as possible n force the carriers to update quicker) and better yet sell all phones unlocked and ready for any network so we can buy whatever phone we want no matter what carrier we’re on. if HTC doesn’t put something out comparable to a Nexus device i’m selling my HTC phone once n for all. it sux but i’ll go to another brand that wants my money.

    • ihatefanboys

      Sense is no better or worse than TouchWiz. Tells me you really dont know WTF youre talking about. The only thing you are right about is the fact they need to advertise the f_k out of it. The HTC One S is a super fast and unencumbered phone.

      • killrgummibear

        i made no comparison to touchwiz. i personally HATE touch wiz, if i wanted an iphone i’d buy one. i just don’t like sense and don’t use it. back in the day it used to sap all the memory from their phones n it sucked. n i wish i didn’t have to go the route of a extra launcher to get it to be stock. plus every time a new version of android comes out they have to make sense compatible with it which slows down the process of us getting our updates. what i’m talking about it being optional is that maybe they could offer it as a download for ppl that use it instead for making everybdy use it.

        i also have the One S and the only things i find wrong with it is the front facing camera is really low quality compared to the Amaze which seemed like a downgrade when upgrading to this phone, the beats audio seems to really limit this phone, the speaker on the back isn’t as loud as what was in the Amaze and sometimes the little door over the camera/sim area is loose but i don’t notice it since i always have a case holding it snug.

        also no need to get bent out of shape cuz i voiced my opinions on this article. i actually do know what i’m talking about when it comes to HTC being a customer for so many years and having so many of their devices (Apache, Titan, Touch, Touch Diamond, G1, MyTouch 3g, Dash, MyTouch 3g slide, Hero, Wildfire, Aria, G2, MyTouch 4g, Amaze 4g and now the One S). that’s 15 devices i owned over close to 7 years and that’s only counting my HTC devices. so when it comes to them i’d like to think i do know “WTF” i’m talking about. :) i didn’t just pick up an HTC (with or without android) yesterday and start complaining. plus IMO they’ve taken enough of my money to atleast listen to what a loyal customer has to say.

  • Nathan D.

    Poor HTC, hopefully this year will be a good one for them and finally get out of that whole they are in. Hopefully, there next flagship phone will be a big hit and put them back closer to the top.

  • Jorge Eslava

    Get bigger batteries and launch a flagship phone on all carriers = win. Are you reading HTC? everyone is saying it.

  • melan26

    Not very many people know them on a name basis; only those who relatively seek or research information would know who or what is an HTC.

  • nikhilverma

    Marketing has to be a major point for HTC.

  • Fernando

    Im glad they are gone, $hit companies should vanish

    • ihatefanboys

      Too bad $hit losers like you with no idea what youre talking about dont vanish too, STFU loser.

  • ihatefanboys

    HTC has to learn what Samsung learned, making a better product does not make it sell automatically. The ONLY thing that sold as many iCraps was the fact they advertised the hell out of it. Samsung learned that last year and finally started selling Galaxy phones like hotcakes in IHOP. Advertising is key, because honestly people are dumb idiots that only buy what they see advertised and ignore anything else. So HTC must break out the big guns and make commercial after commercial so our eyes are drooling from all the HTC goodness because HTC does make the best Android phones, Always have, always will.

    • donger

      Agreed.

    • http://htcsource.com Nick Gray

      So true. It all comes down to marketing. You see commercials for crap products all the time, but they still sell. HTC needs to commit a much larger budget to marketing if they want 2013 to be different from 2012.

  • amIT29

    it sad to see this considering their phones are of immense great quality, perhaps its more of sales/ marketing blunder than anything else, currently HTC is almost as good as android phone maker like samsung while the rest of OEM are far below these two , i really hope HTC come back with a bang on device and campaign in MWC ,

    MAYBE making the next Nexus key lime phone will help more …seeing that now people are actually buying NEXUS phones and they are a peach of device.

  • swazedahustla

    HTC is poised for a nice 2013 if yesterday was any indication. They if they drop a major release on all carriers with this Qualcomm 800 chipset in it, then they might just change the game. I definately will not be getting ANY phone until this 800 series drops.

  • stringdidj

    HTC have lost marketshare to the the likes of Samsung and newer manufacturers offering higher specs for less, I do think this year will be better for them though, Their phones are still really great, wonderfully made, but seriously I think Sense needs to go, If they simply put Vanilla Jelly Bean on them they would fly out!

  • troysyx

    Sadly, the worst is probably not over yet for HTC. They make fantastic phones, they truly do, however there custom UI interface over Android is not good at all. It takes too many great things from Vanilla Android and places cartooney over the top icons and animations for no reason, while sacrificing a lot. They really need to cut back (or just completely stop) on their UI, as well as stop doing carrier exclusive deals, i.e the One X.

  • Peter

    HTC messed up with the HTC Thunderbolt, when Samsung Galaxy S came out. HTC was too arrogant, now they are paying for it.