Samsung, HTC Post Vastly Different Second Quarter 2012 Financial Results

It’s that time as smartphone manufacturers the world over tell their shareholders and legions of users how well they performed financially during the second quarter of 2012. For Samsung, I’d say they have plenty to write home even as the  April – June 2012 period isn’t officially announced for the Korean manufacturer, a Reuters report shows Samsung will post a record profit of $5.9 billion. That’s thanks in no small part to sales of the exponentially expanding Galaxy series of devices indicating Samsung’s legal troubles aren’t hampering their bottom line thus far.

As the story turns to HTC, the picture gets a little less rosy as the Taiwanese company saw a 57.8 percent drop in net profit in the second quarter of this year. Blamed partly on custom issues inside the US and weak European sales, HTC’s small margins are hurting their short-term outlook. Despite globally rolling out the HTC One series, weak European demand along with heavy competition from Samsung and Apple are causing concerns for HTC’s financial health. HTC’s consolidated sales totaled T$30 billion, which was unchanged from May, but a 33.4 percent drop compared to June of 2011.

“HTC’s scale and margin are a lot lower compared to Samsung and Apple. It will see much pressure in the short to medium term,” said KGI securities analyst Richard Ko, adding he expected HTC to see limited growth in the second half.

One troublespot being highlighted by both Samsung and HTC is the troubling Eurozone market as they battle weak prices, demand and a Euro that isn’t stretching as far as it has in the past. Analysts predict that the third quarter of 2012 won’t show much improvement for HTC and Samsung will continue to ride on its strong handset sales even as other consumer electronic areas show weakening demand in Europe.

Reuters, Engadget, Reuters HTC

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  • I honestly think one of the big reasons for this is the fact that HTC didn’t include removable storage or a removable battery with their One lineup.  I can’t speak for everyone, but I know that was definitely a deal breaker for me and probably for a lot of other power user types.  I would have bought a One S a few months ago if it weren’t for that, but decided to wait for a Galaxy S 3 instead.  It’s a shame too because otherwise the One series are great phones. 

    • ogopogo

       I agree. I really like HTC hardware, but two items that are a must include a removable battery, and an SD slot. This was a huge differentiator with the iPhone, and a major selling point for Android devices.

    • Justamazing87

      If the galaxy s 3 didn’t include a removable battery the masses would have bought it.

      Samsung Branded themselves by going with galaxy ____________ for all there devices. that sticks in pols head if u call everything galaxy.

      Their marketing is close to Apples in quality.

      HTC will follow that trend by making the One line up for there devices

    • JBLmobileG1

      I agree with Bill 100% They need to learn from their mistakes by never making a phone without a removable battery or micro SD card slot again. Heck with Apple and their sue happy ways I am surprised Apple didn’t try patenting a device without a battery since all their products seem that way.

    • Agreed on both fronts. I wanted the One X over the S3 because of the material and construction quality. However, the battery and lack of microSD made me wait for the S3.

      When the S3 was available, I had to decide if I wanted better camera and feel or slightly worse camera and feel, but have exchangable battery and storage. And the fact it is available on tmobile…guess who won it for me?


  • Deceptivesmiles

    HTC has been quiet thus far this year w/ the exception of the One series so those numbers were to be expected. They also need to work w/ Google/Android to release another Nexus device. The first one was beautiful as far as build goes. I like HTC’s quality in their handsets, they just have to push more especially w/ Apple attacking Samsung heavily

    • Jose Hernandez

       HTC does make great hardware. However, they have been having a lot of problems with software. They had to release “fix” patches to their new One Series weeks after they launched. The second I heard that, I turned around and left the store without my One S. They need to improve on that front quick.

  • peter rardin

    I would of Bought the One X instead of the GS III for my wife if it had been available on T-mobile but it wasn’t the second best phone the One S just can’t compete vs the GSIII so I got her that phone instead. I can’t buy a phone you aren’t willing to sell me HTC.

  • Tomas

    That’s too bad for HTC, I really liked HTC before the One series, this is not to say those phones aren’t beautiful in design because they are.  HTC’s attempt to limit android users like Apple limits its users is a major bummer.  I think it’s safe to say that we all go android because we like to have control over our memory expansion and power.  I would’ve went with the One S, but not being able to add memory and swap the battery were deal breakers.  Glad I skipped HTC this time around and went with the Samsung GSIII.

    • guidomus_maximus

      Agree.  Its like if Toyota decided to stop including a radio and heater in the Prius.  Good techincal decision to save batt life?  Yes. 
      Same car. 
      Would I buy it with no radio and heater? No, I would not.

    • 21stNow

       I have to disagree with the statement that we all go Android because we like to have control over our memory expansion and power.  I went Android to have more control over the device without “needing” to modify it.  Removable batteries and SD card slots are not necessary for my use.  Don’t get me wrong, I think that phones should have these things, and hate to see manufacturers (Nokia, too) moving in the direction of exclusion.  I just think that it’s an infinitesimal number of users that actually care about these things.

  • Johnson

    I’ve been a loyal HTC customer for about six years. Unfortunately their decision to take lessons from Apple and not bring what the customers want didn’t sit well with me this time around. Apple has more loyal and less tech savvy customers than HTC (Android community). Freedom for some of us is more important so emulating Apple and taking away the SD Card slot and removable battery (horrible battery life on Sensation 4G) really pushed me to the competition.
    HTC, you need to give the people what they want or your sales will continue to hurt.

  • Mueller2051

    i love the feel and quality of my htc amaze but great camera i guess,  just dont use flash it washes everything out when it used and bluetooth sucks,  dont these people even use there  phones in the real world before they sell them  i would never consider the the one s, as other have said no sd card and no removable battery. softwear no complants my sensation and amaze have been stable and sound. .

    • MaseW

      What kind of problems have you had with bluetooth on your Amaze? I haven’t experienced any.

      Granted I don’t use it much, but when I have, I don’t recall having any issues.

      • Mueller2051

        The Bluetooth is real directional it has to be
        really close and pointed to the phone….there article about it IV researched
        it wondering why it wouldn’t perform like the sensation. I also used two diffrent
        types a platronics m20 and a blueant

        • Mueller2051


          do you have the same issue with the camera flash. It great it has a flash but it drowns
          out the pic. just wondering?

        • MaseW

          It is a bit bright. But if I’m taking pictures with my phone, most of the time its outside, so I guess I wouldn’t notice it as much. That and the fact that I recently took up photography as a hobby, so I just don’t use my phone much for pictures anymore.

          It depends on how bad the problem is, and how far you are willing to go to fix it. The only way to really fix it is by using the manual exposure mode and compensating for the brightness of the flash. However, if you’re going to do that, I’d recommend using a camera app that is better suited for making such adjustments. I have heard really good things about an app called “Camera FV-5”.

          The only other thing that comes quickly to mind, would be to cover one of the flash LEDs. But I imagine that would be hard to do without looking tacky.

          If you want to discuss manual exposure on your phone, I’d be more than happy to IM with you about it on either GTalk or G+ Messenger.

        • Mueller2051


          actually done some armature phototoghpy my self. That why I choose the amaze
          over the sg2 at the time. But it really apparent that this part of the camera
          was not tested well. I too really don’t expect huge things from a cell phone
          camera it just handy and even fun to capture things at any time sense my phone
          it always at my finger tips. but the point of it drowning out the picture with
          two bright of flash is worth warrant considering it truly obvious that it will
          washout a picture whether your out side or inside. An app to control the
          brightness of the flash would be good. I did play with a samsung recently and
          did like the fact that when snapping a picture in low lightning the samsung
          would use the flash to provide light for the camera to focus before snapping
          the picture target

        • MaseW

          I agree, and that is basically the exact same function my Amaze serves. I try not to use the flash on my DSLR at all, unless it’s absolutely necessary. But, if I use it, I love having an adjustable flash exposure so I can control the brightness of the flash.

          I assume that this problem exhibits itself mostly in low lighting environments?

          I bet you could improve the quality a lot by trying the manual mode and reducing the exposure a few stops. I haven’t tried it yet, but I assume the manual mode on the phone is more like program mode “P” on a camera, depending on what you change, it adjusts the other settings automatically. I wouldn’t think it was a full on manual “M” set everything yourself type of thing.

        • Mueller2051

           yes lighting is low which isnt very dark because the lens is so small  but that understandable.. usally turn the flash off because of the issue. I will give that a try tonight but don’t have much hope  because the center of pic which is very small is ok but the flash area is a pic with subject in focus and  the background out of focus  try your phone in low lighting and see if it washes it out. the rest of the camera features seem good. 

        • MaseW

          Now that you mention it, the last time I tried to use my Jawbone while I was walking around a hotel room, I was getting some inconsistent behavior. I thought it may have just been something interfering with the signal.

          I’m not sure I fully understand why the Amaze has a few issues that the Sensation never had. With the exception of the hard camera buttons and more RAM, they’re essentially the same hardware (maybe better camera on the Amaze?).

          One thing for sure, my next device will be a Nexus…period. I’m tired of messin’ around with these manufacturers and their customized software. HTC hasn’t even released the kernel source for the Amaze ICS build, so I we can’t even get a proper CyanogenMod release.

          That being said, the experience with my Amaze, was still 10 times better than my experience with my Vibrant. At least my GPS works. LOL

  • Snapdragon S4

    I by any means don’t hate Samsung or their Galaxy series, but I really wouldn’t like see them and Apple as the only two competitors in the smartphone world. Also, I’m starting to think that those rumors of a G3 aren’t going to come true as there has been absolutely zero news about it since it was first rumored.

  • MaseW

    I really don’t think that HTC fully understood the ramifications of the design decisions on the One series.

    They are beautiful devices, to be sure. However, the lack of removable storage is something that people had been complaining about with the Samsung Nexus models (Nexuses? Nexi?), but at least they retained the replaceable battery.

    Cloud storage is not a suitable replacement for expandable, exchangeable, cheap, local storage. Why are you forcing me to use data when I don’t have to? Have you seen where carriers are trying to take data usage? It’s getting more expensive, not cheaper, and you want me to use more and more of it for trivial file access. Why are you limiting what I can access, based on my wireless coverage, when you don’t have to? Yes…I understand I can choose the stuff I want and save it to local memory. But that is only a solution with I KNOW that I’m going to be out of cell coverage, what about when it just happens?

    If I’m having to constantly allow for when I may not have coverage, then you’re just adding additional steps for me to use my phone as a storage device. At the same time, you’ve taken away my ability to increase the amount of local storage available to me.

    Android users are accustomed to having expandable local storage and have developed their usage habits based on that fact. You can’t just take that away and expect people to go, “Oh, that’s cool. As long as you say I don’t need it, I must not need it.” iPhone users, on the other hand, have never had expandable storage so they have always based their usage habits on that fact.

    I had a G1, I then moved to the original SGS (Vibrant), said I would never get another Samsung after the update debacles, then picked up an Amaze. I had every intention of getting whatever HTC offered as their “flagship” this year, but without removable storage and a replaceable battery, HTC devices are a non-starter for me. I’m sure I’m not alone. Guess I’m going to have to re-evaluate my decision on Samsung, and also hope for one (or more) of the nicer Sony’s, and perish the thought…a Motorola on T-Mobile that is not an utter joke of a device (Cliq and Charm? Seriously TMo?).

    I understand the theory of HTC’s decision, and they have every right to make it. I just question the wisdom of that decision, and how they choose to implement both the memory and battery changes at the same time, and on their entire line of offerings.

    • Deadeye37

       Took the words right out of my mouth!

    • Well, you could just buy an ATRIX HD at full retail and use it on T-Mobile since it supports AWS HSPA+ as well as T-Mobile’s upcoming AWS LTE network.

      • MaseW

        I don’t consider the ATRIX to be a “flagship” device, and those are the devices that I’m in the market for. I’d classify it as “slightly above average”.

        Frankly, I wouldn’t consider anything Android that Motorola has produced, as a true flagship device. Maybe the Xoom, or the original DROID…maybe. Their phone hardware has been consistently disappointing to me, and it’s sad to me because I was an engineer at Motorola during the mid to late 90s, when Motorola set the bar worldwide for cell phones.

        I hope Google’s guidance can bring about a change in that area.

    • Mueller2051

      I Believe that Motorola has shared the same view
      with htc I may stand to be corrected but I do believe the new droid has no
      removable storage. And yes this is a reason I do not want a I phone ( no sd
      card ) . However my thoughts are that the reason behind having limited internal
      storage is out of arrogances and financial reason. They can if excepted allow
      the same phone with different levels of storage to provide a higher increase in
      the value of the unit. They also are trying to achieve the thinnest phone. I
      also was hesitant the amaze and sensation which I own both because I like to
      choose a larger battery option which is very limited on the amaze and sensation
      because of the built in antenna. I am a fan of no one company just of a phone
      that works good and last. So far my htc phones have done both very well. I hope
      they change there ides after the new losses in sales and return to what they do

  • corona101

    They shouldve released the device to all US carriers and not just the big 3. I wouldve bought it if they released it on tmo. The One S is not a good enough device for me to switch from a Sensation. To me it was insulting not getting the X. As if I didnt know theres a better device in the series. What were they thinking?

    • 21stNow

       What phone are you referring to?

      • Farhan

        The One X. 

        • 21stNow

           But the One X wasn’t released to the big 3 carriers.  AT&T had the One X, Sprint had a somewhat similar HTC EVO 4G LTE, and Verizon Wireless will get the HTC Droid Incredible 4G.  I wouldn’t describe this as all of the other carriers getting the One X.

        • Farhan

          My bad. I just re-read his post again.

    • Vim

       Verizon didn’t get the One X either.  So only 2 of the big 4 got it, and only AT&T is calling it a One X.  I do agree with your overall point however.  T-Mobile should have gotten the One X, or a variation of it like the new EVO, too. 

  • Calieboy707

    I troll AandM everyday! My issues with HTC are that they are doing the same’ol thing from last year! I want something new something fresh! Samsung has provided both with the SGS2 and SGS3! I do miss the build quality with Samsung but I will get over it!

  • Azazellov

    Well for me it was simple, at first I wanted the HTC One X really bad but then I saw the battery was not removable and it had no SD card, then I saw it wasn’t coming for T-mobile, so i’m getting the Galaxy Note…. I used to only buy HTC phones (Touch Pro 2, HD2, Sensation 4G) and I like the build quality of HTC phones better but they forced me to buy a Samsung phone….

  • Needspeed64

    The most important oversight for HTC is no expandable storage.  If I am spending $600 for a phone or $200 with 2 year contract, I better get the option to add microSD card.  Otherwise, I could have just gotten an IPhone.  No exchangeable battery is ok to me, but it’s also a big no to many.  The US version of  S3 also gets 2GB of ram.

    Also, Samsung actually added many little twists to Touchwiz (all of the motion enable stuff, S voice, etc), which make its more appealing than the HTC.

    Last but not least, Tmo only gets the One S and Tmobile is selling it at the same price as the One X in att (at least in the beginning).  This is totally BS (it’s probably Tmobile’s fault more than HTC, but still).

    • mingkee

      You should also consider Galaxy Nexus.
      $350 without contract is simply irresistible.

  • Azazellov

    I actually was planning to buy the One X. I bought HTC phones for the last few years (touch pro 2, hd2, sensation 4g) but since they never released it for T-Mobile , there’s no microsd card slot and the battery is not removable I’m getting the Galaxy Note. It has everything I wanted: large removable battery, large HD screen, microsd slot for up to 80 GB of storage (it can use 64 GB cards) . I just hope it comes with an s4 processor. Sorry HTC but it’s as if you don’t want people to buy your phones…

  • philly8

    I love my htc one s. takes much better pictures than any galaxy phone due to 4 FPS

  • mingkee

    HTC is losing the game.
    There is ABSOLUTELY no reason to buy One S while Galaxy Nexus only costs $350 no contract.
    Both have 16GB and no SD
    Galaxy Nexus has removable battery while One series don’t
    Galaxy Nexus has 720p display while One S only has 540p
    One S costs $600 full retail (just $30 more you will much better phone…SGS III) while Galaxy Nexus only costs $350 (that’s why it freaked suckApple the hell out and throw the banhammer)

  • matt

    its a shame, i currently have the HTC One S and it is a pretty awesome phone (coming from samsung vibrant). i especially love the metal instead of plastic approach, makes it difficult for me to hold a plastic phone now without going “eww” lol. one thing that would help sales for sure, stop locking bootloaders. i know this isnt their fault, but they have to make a push to stop it. having to go through the whole unlocking process is a real pain in the rear and i think it would help sales if they got rid of it, look at samsung for example 

    • WW

      HTC announced they would stop locking bootloaders quite a while back after the outcry from the G2.  They’ve since made liars out of themselves.  I like both HTC and Samsung but won’t buy another HTC until they fully stop this practice.  
      I am rooting for HTC to get healthier in hopes of seeing continued choice in handsets.

  • TruthHurts

    Honestly, I’ve had HTC over the years…the Sensation 4g was the latest I had from them and it was a good phone.  Had a removable battery (used Anker 1900 battery to boost the life), SD slot, decent overall size and performance.  When the One series were rumored about, I was seriously thinking of one of them…but com’on, half the processors (on the X) and no removable battery+sd slot?!  So in 2 years I lose my dropbox and have to pay extra on an OLDER phone for the storage?!

    I ran HTC Sense 3, 3.5, 3.6 and 4.0 and it was decent, when it didn’t reload from heavy web browsing and/or gaming…Sense used too many resources for it to run.  Never dealt with TouchWiz (don’t know what version) until my wife got the Samsung Galaxy 2, not bad…but we just put another launcher on top of it and it was all good.

    And prior to all of this, I was a RIM Blackberry fan…but seriously, the 52143523 minutes it took to boot the damned thing got tiring, not to mention the joke of Blackberry Bold Touch…my friggin finger would touch 1/4 of the screen…(yes, it was an unlocked one)…had curves, bolds and the OS was old and never catching up with Androids…

    So, the history of RIM falling and HTC slowly following behind doesn’t surprise me at all.  HTC does however, in my opinion, have enough firepower to keep in the race though.  This year though, Samsung is going to take over again…

    Currently a Samsung Galaxy 3 owner…have almost 50gb of dropbox, more than I’ll ever need…16gb + sd slot for whatever I want and removable battery…the newest TouchWiz is amazingly good and no hiccups.  Needless to say, half of my iPhone friends are using their upgrade to get their Verizon version…the other half waiting for what the iPhone5 will bring.  With Samsung’s one-two punch with the  S3 + Note 2 coming soon + iPhone 5 coming soon, RIM and HTC are going to drown.

    • Getsome

      Your primary argument about processor strength hold little to no water. I at this point in the game quad core processing on mobile devices is VERY overrated.

      • WW

        Processor strength was only a small part of his/her argument.