HTC Reports Record-Low Quarterly Profit, Confirming Apple and Samsung as Dominant
The smartphone industry continues to become a two-horse race between Apple and Samsung as the rival handset maker, HTC, recently reported its lowest quarterly profit since the company began reporting in 2004. HTC ended up seeing a net profit of T$85 million or $2.85 million U.S. in the three month span from January to March according to Reuters
. In comparison, HTC made T$10.9 billion in the same period a year ago.
It should be noted that the company’s lowest-ever quarterly profit came after it was forced to delay the launch of its flagship HTC One handset due to a shortage of camera components. The HTC One was only available in three markets at the end of the March quarter, when the Taiwanese company had originally planned to launch it in a total of 80 countries - quite a big difference that anyone should be able to see.
The company also recently announced that it has partnered with Facebook to release the HTC first, a device billed as the first phone to optimize the Facebook “Home” experience for handsets running Google’s Android platform. Although Facebook Home will be available on other Android devices, the HTC First will be the only one available with Home preinstalled.
Last year, HTC accounted for 6% of the total worldwide smartphone market. Its sales were off by 25.2% from 2011, while Apple and Samsung both grew their share year over year among the top five largest vendors. On profit alone, Apple and Samsung ended up capturing 103% of the total industry profits in 2012, a share made possible because rivals such as Motorola, Nokia and Sony actually lost money in 2012. HTC ended up accounting for 1% of the mobile industry’s profits in 2012 but took 0% share in the fourth quarter of last year. We’ll have to see if HTC can turn things around going forward.