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HTC Q3 financial report released, shows continued fall in revenue

Broken HTC

HTC continues on its downward spiral

HTC has published its financial results for Q3 2012, showing a continuous fall in revenues that we've witnessed through previous reports. The company braced itself for a tough Q3 and revenues were expected to be in the region of NT$70-80 billion for this quarter. Hitting the nail on the head in the estimation, HTC's net revenue was $2.397 (NT$70.2 billion) for the months July through September, down from $3 billion (NT$91.04 billion) in Q2.

Net income after tax is reported at $133 million (NT$3.9 billion), which is down from $247 million (NT$7.40 billion) in the previous quarter. According to Bloomberg calculations, numbers published in today's financial report represent a 48% drop in revenues over the past year. It could be worse, at least the company fell within the forecasted net revenue window for Q3. Due to the nature of the beast, Android is proving to be a battleground for OEMs to compete against one another.

HTC is set to unleash the 8X and 8S Windows Phones later this fall once Apollo has launched, which the company hopes will regain market within the Microsoft eco-system with the HTC 8X labelled as a highlighted Windows Phone by Microsoft. The manufacturer has been caught in the middle between pushing against Samsung on Android and fighting off Nokia with Windows Phone. Luckily, Samsung appears to be not only on the fence with Windows Phone, but in the tropical tundra in a neighbouring garden. This will provide room for HTC to wiggle, should it be able to hold up against the Finnish mobile phone giant.

We'll have to see how HTC markets both its Windows Phone and Android offerings, and how the company can possibly turn this downward spiral into financial gain. For the time being, it's a familiar headline we're used to within the Windows Phone community.

Source: Bloomberg, via: Android Central

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Comments

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aubreyq says:

I really hope the 8X and 8S help them out.

Coffee says:

I have a few sales for them on tmobile. Sorry Nokia.

Or you can be patient and wait for the exclusivity to end or wait for CES for Nokia to announce new phones on Verizon and tmobile that technically, don't break the att exclusive thing.

steve_w_7 says:

@unstoppablekem: 
Please provide your sources on the "exclusivity end" and the planned CES announcement of new T-mobile phones from Nokia.

SaviorXX9 says:

People are not going to wait months for a L920. They want it NOW!!!! Nokia fucked up! Because of this exclusive b.s., it's going to bite them in the ass. These guys never learn! My money is on HTC 8X. This is a "fuck you" to Nokia... For not releasing it on every carrier. Yes, im on AT&T too.

OMG55 says:

This is the reason why I for one don't believe Nokia would benefit by moving to Android if MS makes their own phone. While everyone might be disappointed with HTC's commitment to WP's ecosystem overall, they've committed to the Androids and have good designs there as well. So, if Nokia moved, they wouldn't have much to contribute outside of preview and maps which I believe other platforms can use already per Apples directive that users use Nokia maps&Bing for those unhappy with their offering.

theefman says:

On the contrary, nokia is not htc. Being on android now would free them from being beng held back by the artifical delay MS has put on WP8 just so they can have some coordinated release with Windows 8, which is not guaranteed to take off, remember. Nokia would be able to apply all their know how to an android phone. They could release a quad core pureview that included not just Drive but Nokia transport, City Lens, Music, and you can bet all those symbian fans who went android would get a Nokia android phone. I dont think htc's inability to compete with Samsung should automatically imply that Nokia wont do well, and in reality no one would expect them to become no 1 in android overnight but they would definitely be making additional income which would put the company in a better financial position than going solely with WP.

ejlee072006 says:

Stop the talk of Nokia going android...IT WILL NEVER HAPPEN!!! ELOP How the hell can you have google maps and Nokia maps in the same phone????? Tellll meeeeeee???

Which would be a valid point if HTC were the only Android OEM that was floundering. Fact is, Samsung is the only one of the better part of a dozen OEMs that's experiencing the kind of success Nokia needs to change their fortunes. Nokia simply can't currently compete with Samsung's economy of scale right now, and Android is a steep learning curve.

WilliamC1972 says:

Windows phones are able to use quad cores. Not just dual core CPUs.

Neusyn says:

I'm hoping for a more serious commitment by HTC to wp8 not that they didn't offer anything good or what not. Just saying I think it would be nice if they at least put wp8 on the same level as android, hopefully they are doing that and the 8x is just the beginning.

jalb says:

I think they have three problems:
 
1.  Samsung is the "it girl" of the moment, and everyone buying Androids wants dat Galaxy S III.  That's hard to overcome all by itself. 
 
2.  HTC's low end models are lost in a sea of low end models, with very little differentiation.  Plus they go for cheap to almost free which isn't great for the bottom line. 
 
3.  Sense has a REALLY BAD reputation, and HTC wont get rid of it.  Even on their newest best phone, the HTC One X, Sense frequently gets killed in the background, so you hit the home button and have to wait 15-20 seconds while it loads.  That's not a good experience for anyone, and between that and myriad other crappy Sense issues, experienced Android users rarely hesitate to tell new buyers that Sense sucks and they should avoid it. 
IMHO, they should focus on their flagships, make Sense OPTIONAL, with the other option vanilla Android, and tell the carriers to go jump in a lake when it comes to issues like locked bootloaders and s-off. 
 

ejlee072006 says:

Well.....
That's what happen when you freaking stop taking care of your products..like blackberry,Nokia,Motorola all this companies used to be no.1 on the top.. Then they relax and didn't care anymore,they atop innovating because all they care about was the $$$$$$$$$.apple will hit its peak and will start to see decline... Samsung was in decline for a long time until they hit it with the galaxy.. Good advertising,product line up,good pricing is they key here... HTC never really made any effort at all... Hopefully the wp8 products will put them back..

Targus says:

The president of HTC has a bad reputation of caring more about the short-term stock value than the company vision. When their stock price was high (out of no reason) last year, they simply did nothing but enjoying the success.
But when their stock price dropped dramatically in the beginning of this year, they went panic, started a series of downsizings (despite the whole company is still profitable), and hastely built a bunch of new Android phones, not for the company furture, but mainly for holding back the stockholders from selling.
Those hastely designed and built Android phones (One series), though are very good in terms of specification and functionality, later suffer many quality control issues. They did pretty much damage on HTC's brand reputation.

WPCrook says:

Wait.. A company only seemingly caring about the money and not anything else? Reminds me of Capcom. Lol

tomatoes11 says:

Simple fix for HTC, they just need to stop sucking. They could have had me for life if the One X, my first and only HTC product and their flagship, wasn't a POS. I would have gotten an 8x instead of a 920 for sure if the One X was good. My gf's Lumia 800 is awesome, my Galaxy S3 is awesome, my HTC One X sucked. You do the math HTC.

This. My experience with the HD7 has soured me on the OEM, probably for life. I don't really care for Samsung's design, but if it proves too much of a cost difference to get a 920 up and running with a Bell SIM I will buy an Ativ S over the 8x any day of the week, despite its (IMO) boring design and complete lack of innovation.

schlubadub says:

Wow, I'm the exact opposite. I love my HD7... I want to support HTC even though I'm sorely tempted by the 920

Tomasz S. says:

I was in love with my HTC Mozart until the Lumias surfaced. I still have it around in my drawer and like to reminiscent the good times we had. It always felt like a high quality device and I considered upgrading it to a HD7. It worked swell and didn't have horrid bugs like the Lumia 800 had for the first few months. I can't understand why people are hating HTC so much.

Superscythe says:

My HTC Trophy has proved a worthwhile smartphone over the past two years. I am not completely happy due to its lackluster and dated specifications but I cant really fault it too much for that. But I can say that this phone feels very generic and doesn't have any beneficial differentiating factors so it really falls into bland obscurity. I agree, HTC needs to step up. Right now, their effort justified their stock.

Chris Coyle says:

You get results for what you put in. HTC has been sleeping at the wheel. Love my HTC Titan, but I'm dropping them for Nokia next month. Still waiting for the dropped keyboard and Tango updates, exclusive apps ? Forget about it.

schlubadub says:

What has Tango got to do with HTC? I got Tango for my HD7 from my carrier a few months ago now. The keyboard fix was out before that (March?). It sounds like your carrier sucks, not HTC.
BTW you should really look at forcing the updates through... There's numerous instructions around, even on wpcentral!

marantaz says:

My HTC Trophy is small but awesome!  It's the main reason why I'll probably be getting the 8X.  I'm going to give the Ativ a look, mainly because of the screen size and removable battery, but HTC quality has impressed me greatly, and I see little reason to doubt the 8X will live up to the Trophy's standard.

WilliamC1972 says:

Guys, is the Lumia 820 coming to T Mobile USA?

procen says:

I just read it on one of the WP site it will be 810 not 820.

rmichael75 says:

yes. i dont know where the announcement is but it is supposed to be.. I am on T mobile. and i will go with Nokia 820. I dont know what is wrong with it.. It is a very good phone just over shadowed by 920. I need nokia's apps.. HTC apps are non existant or useless.

lubbalots says:

what apps you need from Nokia to tickle your toes? And what makes 820 better than 8x? Most of the time, you're buying the name.

So not looking forward to Tmo and Nokia announcing the 820 as being available for that carrier. Right after that is when the bullshit spin will begin to roll about how good a phone it is, and how this is some kind of proof that the release of their second rate phone on all carriers shows that they get it when it comes to making the products available. HTC can count on one extra sale of their 8X to me as a result ok Nokias decision to make their fantastic top shelf phone available exclusively to one carrier. I thought about buying it unlocked, but right now I think Nokia can just go to hell instead. I'll give my money to a manufacturer instead which doesn't seem intent on irritating about 2/3 of the Windows Phone customer base.