HTC Puts Up Weak Third Quarter 2012 Results, Only Showing Growth In China

HTC’s recent troubles continue as their newly reported numbers from the third quarter of 2012 show as much as a 23 percent drop in overall revenue, with only the Chinese market showing any signs of growth. HTC, now the industries number 5 smartphone maker, is a well-known name but has been hurt by competition from Samsung and Apple, sees overall revenue drop to around $2.34 billion, a drop from $3.04 billion in the second quarter. Still, those numbers are above the $2.26 billion HTC posted in the first quarter, but that hasn’t stopped the company from giving more signs that trouble still lies ahead.

“China will continue to see growth in the third quarter, while other markets will have different degrees of decline,” Chief Financial Officer Chialin Chang told an investor conference.

“Europe, Middle East and Africa will face challenges because of macro softness and competition,” Chang said.

Even while HTC’s incoming revenue is higher than the first quarter, its gross and operating profit margins are set to disappoint. HTC said that it expect a gross margin and an operating margin of around 25 percent and 7 percent respectively. That’s down from 27 percent and 9 percent in the second quarter. If HTC hits the 7 percent operating margin right on the head, it will result in an operating profit of just $163.8 million dollars.

While HTC’s newest One Series generally saw favorable reviews, sales were hampered by a US customers holdup, along with HTC selling back a 50% stake in their Beats Audio share due to a lack of sales.

Can HTC make a return to the glory days of 2010-2011? What will it take?

Reuters

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  • f qcharly

    No SD card. No removable battery or extreme battery life. No future.

    • ogopogo

       Wholeheartedly agree. Screw the cloud storage. I want an SD card slot. I also like having the ability to replace my battery, rather than the entire phone.

    • Tomas

      I second that.  I don’t want and HTC iPhone, I wanted an HTC phone.  But because they limited me in those areas Samsung gets my business.

  • The protector

    David I don’t want anyone to call you out and be a jerk so before 100000 people start commenting on how ur incorrect the title says q3 we are In that quarter now so it should be q2? Right?

    • http://tmonews.com David

      No, not every company runs on the same financial year, this is their third quarter. Financial years and calendar years are different.

  • Mobilewolf789

    I was also thinking the the appeal of sense was starting to wane – perhaps in part due to growing satisfaction with 4.1 stock Jellybean? (and besides the fact that GSIII is whipping a$$ right now)

  • f qcharly

    I remember the excitement when HTC unveiled the HD2. Wow. There was nothing like it at the time. Groundbreaking screen and processor. Made a name for themselves. Now we have expectations from HTC. They consistently disappoint. They need to give us what they used to…by releasing products that are the fastest with the largest and highest resolution screens. Easily rootable for those who want a vanilla Android experience. That would be worth the premium pricing Tmo asks and would put HTC back in the game as a leader. If they keep “going cheap” they will be just another has been.

  • Matlock

    HTC Has done several things wrong in the past year which has ticked off a lot of people. The whole no removable battery thing, has hurt them big time. Yes the devices look thin, and pretty, but if it cant make it through a whole day of use, than what’s the point. Also, with the fact that pretty much all the Service providers have gone to tiered data plans, makes cloud storage make less sense, now, than it would have a few years ago. We need Expandable MicroSD slots on our phones, now more then ever. And my last gripe with HTC, is the Sense U.I. Yes, it has gotten a lot better with the introduction of ICS, but I still have not really fallen in love with it. It still seems too cumbersome, and compared to Samsung’s Touchwiz U.I. never seems to be able to take full advantage of the hardware it is running on. 

    I had an HTC Sensation last year, and as much as I loved the phone itself, I hated using it, all because of Sense. U always felt that the software had not properly been optimized with the hardware, and this to me is where Samsung wins out. Every single Samsung Galaxy S device ive used has felt much more fluid software wise, than the comparable HTC Sense device. The T-mobile Galaxy S2 vs the HTC Amaze it was like night and day.The S2, felt pretty smooth while the Amaze felt a but choppy, and lets not even talk about Battery life, either. If HTC can go back, and fix some these things than I think they will be back up at the top, or at least putting up a better fight than they are right now. 

    • Anonymous

       the sad thing is that other manufacturers made equally thin devices with better battery life

  • http://weevil.myopenid.com Weevil

    HTC’s marketing if f’d up! Android phones without microSD and removable battery = FAIL! Different market than iPhone users.

  • http://profile.yahoo.com/CFX2F3IA4SA5IX2NFVJTDM7VCI Salvatore Varone

    HD2. was a trend setter, a leader and the standard other companies emulated. There was nothing like it at the time, great screen and processor…. Then somthing went wrong, leadership faltered, the company lost focus, the magical touch was gone. Time, energy and millions spent on head phone projects as well as other projects that were useless… Which leader is responsible… The China Market maybe an opportunity for them to regain lost market share. Technology is a fickel lady and once you lose momentum it is difficult to regain.

  • chotpy

    See what happens when you stop making QWERTY phones, HTC? NOW MAKE US THE G3. (And stop the non-removable battery BS, you’re not Apple!)

  • Anonymous

    A few glaring ommissions from recent phones are responsible for where HTC is now.

    What they did right? Made the one series, with 3 levels of size/performance.

    What they did wrong?
    #1 Not all phone were avail on all carriers. Why make all new branding when you end up only releasing one phone on each carrier? Why does only the black HTC one S have the micro-arc oxidation? where is verizons one series? Why did you allow sprint to alter the phone so much? What I see are a lot of inconsistencies that go completely against what the one branding was supposed to accomplish.

    #2 Lack of microsd storage and/or larger internal storage options. I bought a 16gb galaxy s3 (which i will be returning soon due to the upcoming htc phone), and slapped ni a 64gb microsd card.. bam over 70 gigs of storage that doesn’t need me to stream, have reception, or otherwise waste data.

    #3 Lack of high capacity battery (believe it or not, you people that swap batteries are a very small and vocal minority). Putting something like a 2100-2500mAH battery would be sufficient for most people

    #4 Emphasize camera features… but forget to include a 2 stage shutter button (see HTC EVO 4G LTE, HTC Amaze, Sony Xperia phones)

    #5 Option to use sense: Personally, I love sense. It may be heavy, but it’s one of the most intuitive UI’s out there. What I’d suggest, is for HTC to make it an option to pick either sense or stock android upon the initial boot up. That way, they make everyone happy and we can stop the relentless sense bitch fest we see every time sense is brought up. BTW, i HATE touchwiz.

    #6 Camera sensor may be fast, but still has worse quality than the iphone 4S (which is plenty fast imo) Why is it so hard for companies to beat apple? do they all agree on not being better than apple or what jeeze

    #7 Not selling the phone unlocked with AWS bands (like google): With tmobiles’ pretty dam affordable value and prepaid plans, i find myself not signing up for contracts anymore, because it will be much cheaper in the long run if i buy phones at retail. Google and Sony know this, so they are selling unlocked phones now. Unfortunately, sony doesn’t support AWS (which really is tmo’s fault, not sony), and googles phone is now aged hardware (with a crappy camera and no expandable storage btw) But the point is that it would benefit them to be selling unlocked phones at full retail from (for example) their website.

    #8 Poor decisions like forcing beats audio (stupid gimmick) and wasting their precious cash on that lame product/branding. Then also not including beats earphones with the phones that come with beats audio..

    Anyways, if HTC fixes at least some of those, they should be fine. Otherwise, they will continue to fall behind after making one stupid decision after another.

    • Anonymous

        Also, after owning the Samsung Galaxy S3 and HTC Amaze, and using the
      Galaxy S2 and HTC One X, I definitely prefer the look, feel, and solid
      build quality of HTC. Both galaxies i’ve used felt extremely cheap and
      flimsy (esp the plastics all around). HTC still owns in that area imo.

  • Princeasi

    Ha I knew my little boycott to not ever buy an HTC phone after the nexus one touch screen issues would eventually take it toll on the company ha ha ha, that’ll learn ya HTC!

    • Josh Robert Nay

      Yeah … you did this all by yourself. A one person boycott caused the company to lose that many sales.

      Who do you think this is? RIM?

  • http://profile.yahoo.com/Q644PGDXBDOMCGW5JLMUDWAOF4 Derrek

     No SD card. No removable battery or extreme battery life. No future. @8f6573413014b2e5f410e9afc17db7e9:disqus , There is a way that you can work and earn decent money from comfort of your home… See how.  http://samgaloure.blogspot.com

  • oldschool-HTC’er

     Bring back full qwerty physical keyboards (preferably slide out), switch out batteries, micro sd slot. Then you will win again HTC!!

  • xed

    I bought most of HTC phones & expensive accessories since The Nexus One. Enjoyed their innovation, design, and making it to the market first. But since the HTC Sensation, which I enjoyed) their phones started to look the same and quality became an exterior look & feel instead of performance and innovation. The HTC One was the most frustrating phone I have ever purchased with couple of return/exchange 7 a warranty repair that took over a month. I still like the One but other than the great camera & slim beautiful design it’s a terrible phone with many issues.