Oct 08 AT 9:03 AM Nick Gray 42 Comments

HTC’s Q3 profits dip to $133 million, revenue plummets 48 percent year-over-year


HTC’s numbers for the third quarter have just rolled in, revealing yet another loss for the smartphone maker. The company posted $2.397 billion (NT$70.2 billion) in revenue with $133 million (NT$3.9 billion) net income after taxes. This was a substantial drop from the $3 billion (NT$91.04 billion) in revenue and $247 million (NT$7.40 billion) net income HTC posted in Q2 of this year. While it’s always tough when compared to the company’s best quarter in history, revenue from Q3 plummeted 48 percent year-over year.

Officially, HTC has suffered through a full year of declining profits and revenue. Even though HTC finished last year on a sour note, it seems impossible the company will even come close to the $366 million in net income it posted last year in Q4. That being said, we do expect things to start picking up for HTC. The manufacturer’s fall lineup includes the impressive HTC One X+ and HTC 8X and 8S, and we still have a few rumored devices which we expect will be unveiled in time for the holidays.

Do you think HTC will start to turn things around in the fourth quarter? Or will the company continue to flounder as Samsung and Apple eat away at its market share?

Source: Bloomberg

Nick is a tech enthusiast who has a soft spot for HTC and its devices. Nick joined the Android and Me family in the summer of 2010.

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  • http://androidandme.com Taylor Wimberly

    Too bad US customers can only purchase HTC’s flagship phone on AT&T.

    • TheDave

      Maybe if they (and Nokia) stop limiting their market in the US they can start a reasonable comeback. AT&T exclusives don’t seem to be doing them any favors whatsoever….

      • zerosix

        It’s not just about market limitations, it’s about reputation and innovations.
        Let’s take a look at Samsung. In the times of SGS and SGS2 they produced LOADS of absolutly different devices: different cameras, screen resolutions, screen sizes, and, of course, prices. People bought their (often first) smartphones from Samsung, got pleasure and, well, their brains washed with this idea: Smartphone=Samsung. Now they can afford producing SGS3, SGN2 and some more products with lower specs, but people think: “maybe I pay a bit more, but I purchase a device from the leader of the market and it will work great and give me the best UX”.
        After that we should look at HTC which, first of all, makes less devices and they are more expensive. And this year they even say (while everybody is keen on getting at least 1 day of battery life): “users don’t need huge batteries”. And even more: they make just 3 devices plus some variations, but people can’t tell the difference between them. And the prices are too big. Really, I’d better consider buying an SGS2, rather than a 1X.
        To sum up: IMHO HTC needs innovations and something revolutionary. And bigger batteries.

    • JayB95

      These exclusives are so ridiculous!! The new One X and One VX should be on VZW, ATT, T-Mo, and Sprint. If they just dropped the evo and incredible lines and just focused on the damn One series across the board I think they would do very good. It’s frustrating because they have some awesome devices. I would love to buy the One X+ but I’m not going to leave Vzw for it. I know it’s easier said than done but if Samsung can do it with the Gs3 then I would like to believe HTC could as well.

      • Ethan

        Right? what happened to the focusing on hero phones and making them the best for the customer? they immediately turned their backs on that. they are flooding the market again with so many variants i can ‘t keep them straight. and then there is the exclusivity stuff. even the iphone is available on all the carriers now. how can anyone justify exclusivity anymore? they should have like three phones. a low budget, a mid range, and a high end. not three low budget, a dozen mid range, and a new “flag ship” every three months. and then not make a commitment to update the OS in a timely fashion. such silly nonsese. as much as i love HTC they are doing this to themselves and i am not surprised at all.

    • elijahblake

      I’m with AT&T and I wouldn’t waste my money on the HTC One X.. Non Removable battery, no MicroSD, plus the GS3 is better…

      They need to up their game, stop locking bootloaders and be more dev friendly like they use to be.

    • http://www.focuszonedevelopment.com Homncruse

      Exactly. I love how the One X and the One X+ sound on paper, but like hell I’m switching to AT&T.

  • Derek R-C

    So what you are saying is they are making profit but not as much as before?

    You won’t get a tear out of me for that

    • Apple iPhone owner

      Apple makes $133 million in a single day dude

  • nebsif

    They got what they deserve imo. Whats so impressive about 1x+? Or Desire C?.. Despite saying they will release less devices this year they keep on spamming meh stuff like a desperate forum poster spamming BUMP in his own thread.

  • David

    They’re toast. They screwed over thunderbolt customers. They’ll never recover. No ICS update. That was the beginning of their downfall. You can only screw your customers so long before folks start to notice. It’s down to apple and Samesung.

  • Darkseider

    It’s their own fault. Device exclusivity is what their downfall is. All they need to do is follow in Samsung’s footsteps and release on all carriers.

  • Hom0ncruse

    final nail in the coffin for HTC

  • Orion78

    I like HTC but they are really going down. This is their own fault. Samsung is doing everthing the right way. Their flagship is on every carrier. HTC hasn’t learned their lesson. Sorry, but those windows phones aint going to help a damn thing.

  • Heatfan

    HTC = “we are making less money than before, Less release the HTC One X+ on just one of the 4 major carriers. This way more people can buy our phone.” NOT!!!

  • trev186

    Now.image this…

    What if HTC took all the money they puree into Sense and just made all their phones stock Android while focusing on offering the best hard ware like samsung (that means include a sd card and removable battery) among other things. They would be a powerhouse…and really that’s all any android manufacturer needs to do. Focus on hardware and keep the OS stock. Stock is obviously good enough now. And any android user can change their phone to look however they want anyways with a home screen launcher like adw

    All htcs profit is tied up in sense and beats audio….

  • http://htcsource.com Nick Gray

    Things are going to start to level out for HTC simply because this year has been some tough on them. Lets not forget that HTC is still a very profitable company. Profit margins are over 10% still, but big changes are needed if HTC wants to increase revenue 2013.

    To turn things around HTC need to stop granting exclusives to T-Mobile, AT&T, Verizon and Sprint. Nearly 50% of the company’s revenue comes from the U.S. market, but all that money is divided among nearly a dozen different handsets. HTC needs to demand that carriers offer their flagship devices “as-is” so that HTC can build a more cohesive brand and leverage a wider marketing campaign which can reach more potential customers.

    Just think of what HTC could do if it has only one flagship phone to promote across all major carriers and a $50-100 million marketing campaign.

  • Nate B.

    Not surprised. HTC was cool back then and not so cool now as far as business management. Still to many variants. Pointless phones in fields you have no business making. One solid phone a year. Stop several ones with a slight speed boost and they all pretty much have different Sense and you have to update them all psh! One solid phone on all carriers. One name. Sam design. Then when another 6 months past they need to work on a tablet or something in a different market. Not a slight upgrade of the same phone. Your honestly not innovating.

  • Paul Williams

    I love HTC phone, but they still produce a camera phone that records with tinny sound (compared with sony, Samsung & Motorola), so until this is fixed (it has been tinny for years) I will not purchase another HTC phone.

  • Steven Smith

    HTC needs a public lawsuit by Apple. And a multi-million dollar ad campaign. If they can’t afford that. They need to provide better upgrade support, and better focus on 1 line for every carrier. And if they can’t afford that they should try to tap the endless money potential of Windows phones. And if they can’t afford that, they should fly their CEO in a Leer jet to Washington and ask for a bailout.

    Anything short of that would take a long term strategy. I shudder….

  • Paul

    Well the One X and One X+ are slick but they need to stop copying Apple, no MicroSD and non removable battery? And bring back unique features like keyboards. What makes their phones different than Samsung or LG or Sony? They used to have nice Keyboard phones, my wife loved her MyTouch 4G Slide, she even misses the D-Pad after going to the Captivate Glide. Their build quality has definately gone up, the One X is nice, but adding a keyboard option, removable battery and MicroSD expansion would set it aside from GS3 or Note2. Anyways, I hope HTC doesn’t go away, competition is healthy and they helped push Android to where it is now. The original Android phone was HTC, the original Nexus was HTC. I’ve used HTC phones since Windows Mobile 5.5 and 6 and then 6.5; they need to reclaim their greatness.

  • Actress Ronald Reagan

    Hi, we’re HTC.

    soon to be

    Hi, we were HTC.

    • http://htcsource.com Nick Gray

      Doubtful. Google would probably shut down Motorola before HTC went out of business. Currently, Apple, Samsung and HTC are the only large OEMs that are making a profit in the smartphone sector. Right now, HTC’s on track to making $650 million in profits in 2012. That number is a long ways off from the nearly $2 billion in profits they pocketed last year, but it’s still enough to keep the company stable for quite some time.

  • yankeesusa

    I love htc and htc sense but ever since the evo 3d they have gone down. Features and design aren’t getting better like samsung. That is why when I upgrade this year my evo 3d will be the last htc phone I use.

  • jamal adam

    Exclusivity is making them bleed.

  • Paul Atreides

    They need to take a good look at availability, marketing, Sense overhaul, and add a little more pizzazz to their phones besides a red stripe here or a shine piece of plastic there.

  • TruFactz

    HTC, I love you guys, I really do. But here’s a few suggestions, most have been said before if not all:

    1. RID YOURSELVES OF SENSE! Or do a complete overhaul of it.
    2. Stop putting money into things not needed, that includes “HTC likes”, that’s what the ratings and “+” thing on the play store is for, the Music App, I noticed this with the 4.0 update on the sensation, why the hell is there two?????? Put your enhancements from the default HTC one, into Play Music! Like the equalizer, and Beats Audio. Asus did it!
    3. The radio. Many phones don’t have it, that’s a plus, I love mines, but put internal antennas inside, alotta people, can do without having to carry a Bluetooth and wired headset around.
    4. Boot loaders, unlock ‘em FROM THE START. This is Android! (Heh, 300) yes we do have our noons who think a boot loader is some kind of hunting store, but we have more tinkerers and nerds than that!
    5. RID YOURSELVES OF SENSE! See, toldja you’ve heard that one before.
    6. Don’t jump on the bandwagon of purposely “copying” Apple, you’ve seen the results. Yes Saudered batteries do have less power leakage and whatever, but us Droid users……….WE’RE CONVENIENCE PEOPLE! if we could walk around with the ability not to charge a phone ever! We would!!! But the closest we got is extra batteries so let us enjoy that a lil while longer while the solar charge still gets some mods done. Same goes for memory, 64GB sounds cool, but what about 128GB??? Sure does make those Gameloft games looks like a welfare case don’t it???
    7. Here’s some cool things you guys can come out with, at least until Google gets one. A game center like service that records progress and achievements, and if Apple tries to sue, talk to Sony, and get some goons, so you guys can catch Tim cook at his daily morning Yoga class and beat the crap outta him

    • TruFactz

      Oh yeah, and the exclusivity…… biiiiiig problem. How’s this for exclusive: imma give Samsung my money EXCLUSIVELY, because HTC doesn’t have a device that I like on my service provider that can compete with the S3????????

  • Flyerone

    You forgot to mention that consumers want to be able to upgrade their onboard storage for 50c a GB not $2-$4 a GB. Give us A MICRO SD CARD SLOT!!!

  • MoSDeeb

    At least they haven’t had losses as of yet. I’m really hoping HTC can turn it around. A launch without carrier exclusives is the most obvious answer. Get the products into as many people’s hands as possible.

  • aburgthing

    HTC are you reading this? Keep on ‘em guys and gals! We in the Android Army don’t like compromise. With you HTC all you give us is compromise. Like the One X or One X +? You have to switch carriers. Want an unlocked bootloader? Forget about it. Want a removable battery? Nope not with HTC. How about expandable memory? Switch carriers and go to Sprint for a One X variant with no LTE for over 90% of their market. How could you possibly expect to run a profitable business with these practices? This is not news for you. I’m sure you have very smart people who analyse this information. Stop for a moment and re-evaluate where you are, what needs to be done and do it. The carriers need you and we need you to foster competition.

  • DaRibbit

    All HTC needs to do is make a nexus 1XL bring back glowing track ball different color notification lights, andmake it a 5 inch super inked screen perfect!! But make it look like the nexus one! He’ll they sold a sit load of them :-P

  • ichigo

    thats cause htc got a mentality of thinner phones over battery life. they are gonna get their asses kicked if they dont turn this around.

  • marc

    Marketing, HTC. Marketing.

    People outside the US don’t care about the carrier exclusivity.

    • Dezzy

      People in the US DO. When they implement practices like this, they sell fewer devices. And when they have exclusives its alienates people toward their brand. They havent really let the One series really get into people’s heart’s and minds all because of the exclusivity deals. Normally I wouldnt even care either but I did happen to want this device back in April. But guess what they had an exlusive back then. So i waited, honestly believing eventually it would make it to my carrier. At first it was rumored to come then it turns out TMo rejected it for testing purposes and then the next day, i read its an AT&T exclusive just like that they managed to limit this device which is only 5 mos old to just one carrier. Yet again. Thats not exactly a great plan for a flagship device. And its showing in their earnings.No sympathy because they’re repeating the same thing they did 5 mos ago with the same device with refreshed specs. HTC is being quietly stupid.

  • Y314K

    Limiting u’r self to AT&T + No SD card support + No removable battery will do that to u HTC….

    • Nathen

      YES ! Agreed WHY do they not see that ??????
      100% so right

      Someone working for HTC needs to READ the forums !! and listen to the Android buyers ( US ! )

  • drone3

    HTC One S , is the slickest designed phone I have seen this year. Give it the same quality screen the one x has, and refine the materials so they don’t scratch, and give it pure android JB+ and you got a given winner! Take the 4-4.3″ market seriously, Sony are the only ones trying , but are off the mark by 6 months.

  • birdman

    I wanted a one X on t-mobile instead you release evo 4g lte on sprint and one x on att….

    plus sense sucks ass

  • Nathen

    If HTC makes a Nexus Phone with latest specs on par or better then the LG Optimus or Nexus (whatever it is called) I will buy 2 , one for me and one for my wife.
    The HTC one X is nice but I need a removable battery and an SDcard.

    Please HTC give us a HTC Nexus with SDcard and removable Battery. !!!


  • amir

    HTC…you are the best..Best Screen – perfect sound – powerful hardwar – Fantastic design- realy ui .. but still u arent perfect when there are no sd card & removable battery..WHY??!!!!!why??!!!!

    plz Give US SD CARD & Removable Battery!!

    i waiting for compeleted phone from HTC..

    Quality brillant dont forget!!

  • VerticalCobra

    Hope they stay in the black…competition benefits us all…