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HTC cites competition from Apple's iPhone as profits drop 26%

HTC on Monday revealed that its handsets are struggling against Apple's iPhone, as well as Android-based smartphones from companies like Samsung, leading to a 26 percent drop in fourth-quarter profits.

The outlook for the current quarter is even worse, with HTC officials projecting a 36 percent drop, according to Apple 2.0. HTC Chief Financial Officer Winston Yung told investors on a conference call Monday that his company is in the midst of a product transition that will hurt sales in the next quarter.

"Our weakness in first-quarter guidance also comes from facing competition in the U.S. from iPhone and Samsung," Yung said. "LTE handsets also didn't meet our expectations."

In addition to being once of the first Android smartphone makers, HTC was also among the first to embrace 4G long-term evolution technology, the high-speed wireless data standard positioned to replace 3G. Apple has stayed away from LTE in its wireless devices, citing poor battery life with the first generation of 4G chips.

HTC declined to reveal any specific sales figures for its smartphones on Monday, so its unknown how the Taiwanese company fared unit-wise against the record 37 million iPhone sales Apple saw in the holiday quarter. HTC has promised to introduce four new handset models at the Barcelona Mobile World Congress, which will kick off on Monday, Feb. 27.

HTC has been closely aligned with Google Android since the mobile platform debuted in 2008. In fact, the HTC Dream, which was marketed in the U.S. as the T-Mobile G1, was the first phone on the market to run Android.

But since then, HTC has been surpassed by rival competitors who also build Android handsets. During the holiday quarter, Samsung is estimated to have sold about 32 million total smartphones, shy of Apple's 37 million.

HTC is also involved in a number of patent infringement suits with Apple, in which each has accused the other of stealing its ideas in smartphones. Apple won one such case against HTC in December related to "Data Detectors" in operating systems. Microsoft is believed to receive $5 per unit for each HTC Android device sold.



44 Comments

solipsismx 13 Years · 19562 comments

Apple's not HTC's problem, it's Samsung.

absolutedesignz 13 Years · 1930 comments

Quote:
Originally Posted by SolipsismX

Apple's not HTC's problem, it's Samsung.

Apple's not HTC's problem, it's Samsung AND HTC. lol

HTC was amongst the top of the Android OEMs...but lately their offering have felt very Motorola-ish..

Plus the look of their phones has gotten VERY stale.

solipsismx 13 Years · 19562 comments

Quote:
Originally Posted by AbsoluteDesignz

Apple's not HTC's problem, it's Samsung AND HTC. lol

HTC was amongst the top of the Android OEMs...but lately their offering have felt very Motorola-ish..

Plus the look of their phones has gotten VERY stale.

That's true. A couple years ago if I were to buy an Android-baed device I would have chosen HTC as the vendor but today it would be Samsung. HTC simply has no compelling HW. I would also no longer by a WP7-based device from HTC, instead I'd go with Nokia.

maccherry 14 Years · 924 comments

This always happens in tech. You get the boom and then the bust.
How long did HTC think they were really going to get away with selling so many different phones a year to the same core audience?
The entire tech industry is driven on the narrative of selling, "WHAT'S NEXT". But soon they will be asking themselves "WHAT'S NEXT".

lkrupp 19 Years · 10521 comments

Quote:
Originally Posted by maccherry

This always happens in tech. You get the boom and then the bust.
How long did HTC think they were really going to get away with selling so many different phones a year to the same core audience?
The entire tech industry is driven on the narrative of selling, "WHAT'S NEXT". But soon they will be asking themselves "WHAT'S NEXT".

So much for the market share argument. It's not how much you sell but how much profit you make. You can sell the most of anything but you still go out of business if you don't make any money doing it. Amazon missed its analyst expectations even with the "iPad killer" Fire selling "millions."

But Android is "winning" isn't it, even though Google makes most of its money by selling ads and customer data.