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HTC Profits Drop By 79%

An anonymous reader writes "HTC is the world's fifth largest phone maker, but it's starting to feel some serious pressure from giants like Samsung and Apple. HTC's third quarter net income dropped 79% from the previous quarter, and total revenues were down 48%. 'Sales of HTC's flagship One series, which debuted in February, are trailing off as Apple and Samsung spend four to six times more on marketing to ensure the iPhone 5 and the Galaxy SIII dominate the market, while strongly subsidizing their older models ... HTC's share of the global smartphone market by shipments fell to 5.8% in the second quarter from 10.7% a year earlier, according to Bloomberg. The company released its first Windows Phone 8 models in September, its most high-profile pre-Christmas launch, but Microsoft's operating system has yet to establish itself as a serious third player after Google's Android and Apple's iOS.'"

30 of 209 comments (clear)

  1. Re:GOOD !! THEY BREAK UN SANCTIONS !! by Anonymous Coward · · Score: 5, Insightful

    I have trouble faulting a company from Taiwan for disregarding the UN, as the UN insists on disregarding Taiwan.

  2. It's because they removed the SD Card by Anonymous Coward · · Score: 5, Insightful

    The HTC Vivid was the last AT&T phone that had a MicroSD slot. The One X variants and subsequent models do not.

    Of course, the carriers hate SD slots, because they would rather you eat up all of your data accessing your stuff in the "cloud." Google is also all-to-happy to remove the SD slot for the same reason, because they want to access your data, too, and it's easier for them if you're storing it on their hard drives.

    I absolutely will not buy a phone or tablet that does not have an SD slot. If they all stop offering them, I'll just keep limping along on my Inspire until it dies, and then I'll go get a prepaid dumb phone.

    Smart phones are fun toys, but they are useless unless I can store my music and videos directly on them.

    1. Re:It's because they removed the SD Card by Anonymous Coward · · Score: 2, Funny

      but they are useless unless I can store my music and videos directly on them

      or on an SD card. Make your mind up

    2. Re:It's because they removed the SD Card by pstorry · · Score: 4, Interesting

      I can agree with this.

      I've got a HTC Desire Z, which is coming up for an upgrade on my contract. As a tablet, I have a HTC Flyer (bought at steep discount recently).

      The phone has just a touch more than 32Gb of storage used between internal and external combined. The Flyer, with 32Gb internal AND a 32Gb SD card, is doing fine.

      I really want a HTC One X. It's a straight up choice between that and a Samsung Galaxy S3. The HTC's build quality is better (mmmm, polycarbonate!) and it has HTC Sense - which I am used to and quite like.
      But I know that the moment I move to the HTC One X, I'll have to trim a few MP3s out just to do the migration. Now, perhaps that's no bad thing. It's probably overdue in fact.
      But if I buy the Samsung S3, I just throw my SD card in the back and start re-installing apps. It feels cheap and plasticky? Sure, buy a silicon skin from ebay or Amazon. Problem solved.

      HTC have released a 64Gb version of the HTC One X, but it's too little too late. As a still newly released flagship version, it'll be much more expensive than the S3 by December/January when my upgrade rolls around.

      So currently, I'm veering towards the Samsung. If the HTC One X had an SD card slot, the S3 would get about a second's consideration, then I'd buy the HTC anyway. Instead, I'm buying apps like HD Widgets (in the recent Play store sale) and starting to migrate my widgets from Sense ones to those where applicable.

      Sorry, HTC. You've made a phone that's brilliant, but you forgot a very simple feature...

    3. Re:It's because they removed the SD Card by MrDoh! · · Score: 5, Interesting

      Why I loved the HTC Nexus One.
      No stupid skins, just pure Android.
      Fast
      Zero bloatware
      Updates
      SD-Card
      Easily unlockable bootloader
      Awesome build quality
      Replaceable batteries
      Beautiful screen.
      .
      .
      Reasons I dislike the new HTC phones
      Terrible skins
      slow (odd stutters, I think related to the skins/bloatware)
      Slow updates (and CM appearing to have issues as the drivers/specs hard to get hold of)
      Lack of SD-Cards (I get it, MS want's their cut, but what's the price? If it's 5bucks a device, I'm happy to pay that extra)
      Locked bootloaders
      Build quality falling. Pic up a HTC One S/X and on first glance it looks good, but tolerances appear to have slipped, just... not as good milling for the metal.
      Non-replaceable batteries.
      .
      .
      Screens are still good though, the contrast is great. The Camera was great quality too (though not THE most important item on a phone). .
      .
      HTC, look, you're stepping away from why your phones were so beloved at the time. You're letting 'idiot marketing/execs' get in the way of /really/ listening to your customers who know what they like and WANT to use your phones, but are being put off by terrible decisions. Seriously, everything we liked about your phones in the first place, you've got rid of. Who's brainwave WAS this to get rid of everything that made your phones so good?

      --
      Waiting for an amusing sig.
    4. Re:It's because they removed the SD Card by alex67500 · · Score: 2

      Sure, the HTC CEO reads slashdot every day.

    5. Re:It's because they removed the SD Card by gweilo8888 · · Score: 2

      Also, don't form your buying decisions based on a few complainers. Those who have problems complain. Those who don't have problems tend to say nothing. That leads to problems seeming far bigger than they really are. There are plenty of us--me included--who bought pretty much on launch day and have no WiFi problems. HTC is great with firmware updates, supports the development community (albeit you have no warranty once you unlock, but they're upfront about that), and frankly the HTC One X (well, now the One X+) is the best phone on the market. Everybody who sees mine raves about the screen, and for a high-powered smartphone the battery life is great too.

    6. Re:It's because they removed the SD Card by MoreDruid · · Score: 3, Informative
      Don't get me wrong, I fell in love with the specs and screen as well. I still like the model, I just happened to have gotten a lousy unit and HTC has been very reluctant to help me out for about 3 months now which is dissappointing if you've just shelled out 579 Euros (almost $ 750) for a smartphone. When I went shopping for it it was a toss-up between the SIII and the One X and brand loyalty (and the fact that I think that the blue plasticy shell of the SIII is hideous) made me choose the HTC. I've owned the Touch, Desire and bought the Wildfire for my kid and they were all good phones, where everything just worked. There are more people than just the ones on the XDA board, like I said, 2 family members have the same issue as I have but didn't notice it because they don't use the navigation on the phone.

      The guys that do the pickup do all the pickups for HTC in the Netherlands and at the 3rd visit (I got the same driver each time) he told me they were picking up lots of the HTC Ones, a lot of Apple iPhones but very few Samsungs, and those were mostly by user defect (cracked screen, etc).

      All that leads me to not recommending it. However: if the unit you get doesn't have issues it's a very good phone, I like the build quality and feel of it, very good phone quality, the CPU is fast and doesn't drain the battery too fast, the screen is very nice and bright, the OS is responsive, basically everything you'd ask from a top model, and something I've come to expect by using my previous HTC phones.

      --
      The best weapon of a dictatorship is secrecy, but the best weapon of a democracy should be the weapon of openness.
  3. Pressure from competition? yeah right by mybeat · · Score: 4, Insightful

    Maybe HTC should stop making stupid design decisions like a non removable battery and no microSD expansion slot? Owned original HTC Desire and still love it, despite browsing Slashdot on it was soo slow.

    1. Re:Pressure from competition? yeah right by scot4875 · · Score: 2

      With Android, if you're happy being locked into a single vendor like you are with iOS, you have the same ability with Google Play and synchronization with a Google account.

      And an SD card gives you an *additional* option.

      So in this case, like most others, Android's feature set is a superset of iOS'.

      Nice try though!

      --Jeremy

      --
      Jesus was a liberal
  4. Haha by binarylarry · · Score: 3, Insightful

    Don't worry HTC, those Microsoft phones will get you back in action!

    I've bought HTC phones exclusively since Android came out but I've grown tired of all the issues that popup. Plus HTC tends to be douchey about releasing source code and drivers, so my next phone will be from elsewhere.

    --
    Mod me down, my New Earth Global Warmingist friends!
    1. Re:Haha by erroneus · · Score: 3, Interesting

      That's kind of the lesson here isn't it?

      The Android phone market isn't quite what I would call "settled" or mature just yet. People are still exploring them and building their expectations of them. This means that when people see something in another phone that they can't or don't have in theirs, the bridge between consumer and manufacturer/seller goes up like flash paper.

      HTC decided that the carriers are their customers instead of the people who actually hold the phones in their hands. So yeah, they were pretty douchey if you like to put it that way. That and HTC isn't well known for putting out "premium" handsets. (If they actually make premium handsets, I don't know.) So what you get are pretty low expectations and a lot of frustrations.

      It doesn't hurt that the "anyone who does phone business with Microsoft is doomed" tradition is alive and well. That problem has been on-going for a very long time and I still haven't seen a success story yet.

    2. Re:Haha by NewWorldDan · · Score: 2

      Ok, so my list of phones to not buy currently stands at (these have all done me or someone I know wrong):

      Apple
      Nokia
      Motorolla
      Samsung
      HTC
      Blackberry
      LG

      Um, is there anything left?

      In any event, I'm actually looking at a Win8 phone for my next phone. My last 2 Android phones have been full of buggy crap that wasn't maintained by the handset maker. I only use 6 things with my phone: voice, sms, email, browser, maps, and music. Any phone will do that now. What I hear about the Windows phones is that they're not big on the apps, they're not sexy, but they work. That's what I want. I'm not an Apple person and BlackBerry has no future, so Win8 phone it is.

    3. Re:Haha by jacknifetoaswan · · Score: 2

      I think that Ice Cream Sandwich and Jelly Bean, plus this rumor that Google will be releasing multiple Nexus devices in the next year via multiple OEMs is exactly what the Android ecosystem needs to settle itself. Up until now, each version of their OS, while great in and of it's own, has been an exercise in rapidly releasing new features to either catch up to or exceed Apple's specifications. Android 4.0/4.1, and the to-be-released 4.2 (Key Lime Pie?) are making Android just as mature as any other smartphone ecosystem.

      That said, I do believe HTC has put out premium handsets, though generally, they're more a mid-level producer. The Thunderbolt, original G1 and Nexus One, plus their One series, truly are/were premium phones. The Thunderbolt (which I'm still using) is an awesome phone, and although HTC has definitely dropped support for it (even after leaking an ICS build in August), it's still a fast, reliable, well-made handset. Rooted, and running CM7, it's even better.

  5. Simple by Propaganda13 · · Score: 4, Interesting

    Change the name of the poorly named HTC EVO 4G LTE to the EVO 5 then advertise it. It stacks up well against the competition, but either people think it's a 2 year old phone or they've never heard of it.

  6. Done with HTC by carlhirsch · · Score: 2

    For me, HTC's strength was their continued devotion to physical QWERTY siding keyboards. I'm simply not going to be SSH-ing into a server with a touchscreen.

    Two things have sunk this affection. First, HTC (like the rest of the industry) is moving away from physical keyboards. Second, the last QWERTY I got from them crapped out in a really disappointing way. I had a MyTouch 4G slide, also known as the HTC Doubleshot. Really nice phone, decent modding community. The thing is, it's got a design flaw. The flex cable between the front and back halves of the phone failed, causing a whole basket of things to go wrong. When I disassembled the unit, I could clearly see how the edge of a metal bracket was rubbing against the cable every time the phone was opened or closed.

    If you've got a HTC Doubleshot, it's just a matter of time before it fails. I'm sure the design engineers recognized this problem but they likely had their fix overruled to save production cost or hustle the unit out the door. Worse, it could have been planned obsolescence, given that the problem manifested a month after the warranty expired.

    Meanwhile, my HTC Dream is chugging along with new old-stock units available for $90, and HTC has walked away from the one thing they did better than the rest of the industry .

    --
    . We've got computers, we're tapping phone lines, you know that ain't allowed - Talking Heads, "Life During Wartime"
    1. Re:Done with HTC by medcalf · · Score: 3, Insightful

      Actually, I SSH into servers from my iPhone frequently. If the virtual keyboard works for you in other contexts, it works just fine for SSH. (iSSH, the program I use, has a couple of handy controls floating on the screen that give access to things like an ESC key and arrow keys that the virtual keyboard itself lacks. I tried out a different terminal program for a while that used gestures to do the same thing, but it just wasn't as easy to use of a solution.) So bottom line is, virtual keyboards don't have any intrinsic issues with SSH use for common system administration tasks.

      --
      -- Two men say they're Jesus. One of them must be wrong. - Dire Straits
  7. Re:I can't tell if you need a whooosh or not. by ByOhTek · · Score: 2

    Correct, but I think it was an imprecision on the language rather than an uncertainty.

    I've said similar before myself.

    There is not enough room on any phone/tablet's built in memory to hold what I want to put on them, but with SD/microSD cards, the usually have enough. Unless you swap the card a lot, you just start to think of it as part of the phone, because you don't have to remove it. And with some phones I've had (looking at you samsuck), I've had to take the battery cover off and even take out the battery in a couple cases, to swap the card. At that point, it might as well be part of the phone.

    --
    Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
  8. Re:Agreed by ByOhTek · · Score: 2

    woo-hoo! one more thing to carry around.

    Not interested. I'll take the onboard card.

    --
    Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
  9. Re:GOOD !! THEY BREAK UN SANCTIONS !! by Anonymous Coward · · Score: 2, Funny

    That bit me when I bought an unlocked HTC phone for travelling.

    I call it the Islamofacist phone (note: I've nothing against most Muslims I've met, but I do have something against countries that force it on their citizens, and companies that resell such phones as unlocked).

    Most of the applications wouldn't work, you couldn't use the app store or install unapproved apps. Most installed apps didn't work except (a) the web browser, oddly enough. (B) A prayer time reminder (that you couldn't turn off, but could set to local or Mecca time), a Koran reader, and similarly themed app.

    At that point, why the hell bother with a smartphone?

  10. Yep! Good riddance! by Evtim · · Score: 3, Insightful

    My first and so far last smartphone is HTC Desire. What a piece of @#$%#!

    First, the menu buttons on the bottom stop working after 1 year regular use (3 out of 3 - the phones of myself, my wife and a friend)

    Second, and much more frustrating - no system updates. Zero, nada,zip! I am still running Android 2.2 ?!? Their proprietary overlay of Android is utter crap, I have no control over the device (unless I root, but damn it why bother - I should get unlocked phone from the start), I cannot remove shit like Facebook applications, stock market update (WTF?!?) and so on....sometimes the phone just stops responding because it is busy running....itself

    Now, I'll admit the above is not necessarily a flaw of HTC only, but come on...Overall I am utterly disappointed by the whole smartphone thingy. I expected a small PC in my pocket and all I got is locked, slow, power hungry piece of shit, that spends 80% of its power running itself... and no, I am not going Apple because of this (different set of crap IMO) but I just might "devolve" to dumb phone again.

    New slogan - "dumb phones are for smart people, smart phones are for dummies". Please, spread it around - we just might convince enough people to stop falling for the hype and get those companies in line...oh, forgot boycott does not work in our economic paradigm. Well, forget it...

  11. HTC should make some more models by alen · · Score: 3, Insightful

    Apple has the iphone
    Samsung has the Galaxy S3
    verizon has droids

    people know these names. HTC used to release a new phone a month on different carriers under different names with slightly different specs. diluted the brand because people didn't know what they were buying

    1. Re:HTC should make some more models by Antimatter3009 · · Score: 4, Insightful

      I think you've got it more right than anyone else here. Features like an SD card and removable battery are nice, but very few people care. Just look at how well the iPhone does with neither. What really makes a difference is how you sell your product. Samsung and Apple sell the exact* same phone across all carriers. Then they advertise that single phone straight to consumers, knowing that the carrier they're on doesn't matter. HTC sells the One X exclusively on AT&T. They sell Evos on Sprint. They sell Droid Incredibles on Verizon. They can't advertise a single product line to consumers, leaving them pretty much reliant on the carriers to push their phones for them. What do they expect?

      When people think Apple, they think iPhone. Samsung, they think Galaxy S. HTC, they think... well, probably nothing. None of their product lines have a strong brand identity, so people won't ask for them. And when people won't ask for you product, how do you plan to sell any when you're competing against the products people will ask for?

      * I realize some internal components are different, but as far as the average consumer is concerned, they're exactly the same.

  12. Great phones, poor marketing by flar2 · · Score: 3, Funny

    The problem is HTC hasn't got the word out. Everyone's talking about the Samsung Galaxy S3 and new iphone, but the One X is, IMHO, the best phone on the market right now. The screen alone makes it better than the SGS3 and iphone 5. Also has a very nice camera and never lags. Everyone who sees my phone is like "wow, what phone is that?"

    I've also owned the One V, which is a low end phone, but surprisingly feature packed. For the record, I actually like the HTC Sense interface better than vanilla android.

  13. what bullshit by sribe · · Score: 2

    Apple and Samsung spend four to six times more on marketing to ensure the iPhone 5 and the Galaxy SIII dominate the market, while strongly subsidizing their older models...

    Oh yeah, if only our competitors did not advertise nor compete on price/features, then we'd be doing great!

  14. This is unfortunate by AbRASiON · · Score: 5, Interesting

    HTC make the second best Android phones behind Samsung. If Samsung turn evil or make stupid decisions I don't agree with, I like having HTC there as a backup. I owned a HTC HD2 (no it's not a native Android phone) but the build quality, for the time was fairly good and HTC Sense really isn't that bad. (Then again, I don't hate touchwiz either)

    I hear Sony's Android phones aren't shabby but I have a hard time believing a juggernaught like Sony would release timely products or updates. Also LG and Motorola both "not bad" but HTC is definitely, in my eyes #2 - it'd be a shame to see them completely slayed.

    I don't follow them too closely but I believe they were continuing to focus on Microsoft based phones which seems, completely foolhardy to me - the sales numbers on those things would be quite miniscule, fingers crossed they remain competitive. (The HTC One X does have a glorious screen, but the lack of removable battery or SD card slot is a no no, the actual design however - for the most part is quite nice looking like the S3)

  15. Re:Sad by compro01 · · Score: 3, Informative

    Might try a keyboard with arrow keys. Hacker's keyboard is a nice one.

    Though the keys get kinda small if you use the full 5-row layout in portrait mode, at least on my Incredible S.

    --
    upon the advice of my lawyer, i have no sig at this time
  16. I would never buy an HTC phone again b/c of Sense by jt_04 · · Score: 2

    My wife had an HTC phone and I found the Sense UI to be terrible. It slowed down her phone because it was so resource hungry and most of the changes in Sense didn't really add any value, they were just flashy changes meant to impress people. I flashed cyanogenmod and she loved it. I love HTC's hardware, but would never buy one of the phones again unless they improve their awful UI.

  17. Same old problem... by MaWeiTao · · Score: 2

    It's the same old problem with Taiwanese companies. They're capable of producing a great product but don't quite appreciate the value of consistency and marketing. They don't really define a vision and are too reactive; someone else comes up with a defining product and they rush to match it. Granted, HTC has done better than most. Usually Taiwanese companies flirt with the bottom, trying to offer a feature rich product on the cheap. You get good value but you never get the sense of a committed brand focused on quality. And the Chinese have taken over this space.

    Historically, however, Taiwanese companies have had to fend for themselves. South Korean chaebols have enjoyed the benefit of government backing, enabling them to focus quality and design. It created a scenario in which they were able to build global, established brands in a relatively brief amount of time. Who would have taken a Korean brand seriously 15 to 20 years ago? It took Japanese companies closer to 30 years to establish themselves and they didn't have the competition Taiwanese are facing. HTC hasn't yet been able to define themselves as a prestige brand like Apple, or even Samsung to a lesser extent.

    I do think HTC has one of the best custom Android skins on the market, superior to anything the Koreans offer.

  18. Bee pee by tepples · · Score: 2

    Doesn't BP stand for British Petrol?

    BP dropped that name around the time it rebranded itself in 2001 as "Beyond Petroleum" and replaced the shield with the sunflower. If BP stands for anything, it's "Apis urine", or in layman's terms, bee pee.