HTC Losing Ground Faster Than RIM or Nokia
zacharye writes "How bad is HTC's current tailspin? So bad it makes Nokia look like a growth company. HTC's handset volume declined by -43% in the autumn quarter vs. Nokia's -23% volume decline. This is very interesting because HTC is using Android, the world's most popular smartphone OS, that is powering 40% annualized growth among its vendors. Nokia is limping along with an unholy mix of the obsolete Symbian platform, the moribund S40 feature phone platform and a niche OS called Windows Phone."
Android is not making money for anyone except for Samsung and the carriers.
So that means its volume increased by 43%?
Okay, so HTC took a 43% hit on total units shipped in the Autumn quarter...the same quarter that the iPhone 5 came out. How heavy a hit did they have in Summer and Spring? It's happened before that when a new iPhone comes out, that's pretty much all anyone buys for a short while. Nokia's decline, on the other hand, has been going on consistently for some years now. A 23% drop for them means, what...that they delivered 23 less phones than the previous quarter?
For your security, this post has been encrypted with ROT-13, twice.
I was rather surprised to hear that HTC is actually part of Via, and here I was thinking Via only produced crap.
http://en.wikipedia.org/wiki/VIA_Technologies
Also, I want a Nokia with Android.
Really? Last numbers I saw put the iPhone ahead of Android. Anyone have numbers on this?
Nokia is still limping along with Meego remnants, (and did that team kick-ass to deliver the N9 on-time, just before they were fired). There must still be some semblance of a paper trail left! Do not forget Meego! (the other OS).
Godspeed Jolla!
You can't be ahead of the curve, if you're stuck in a loop.
Htc one x could of been a contender to the galaxy s3 if they didn't go full retard on design and put a non removable battery and no expandable memory on their flagship phone. I guess they thought trying to copy an iPhone's flaws was the right decision. That and dont they have locked bootloaders?
I stopped paying attention to HTC the day they declared they wouldn't make any more phones with keyboards. That was what they had over Samsung and Motorolla. Now they are just make the same kind of phones with lesser build quality.
That could and should have been *their thing*. If they are just making the same type of phone as everyone else, may as well buy a Samsung.
For some reason in Europe, you tend to see a lot of stores advertising "-50% off!" sales and such.
Apparently double negative percentages have the opposite meaning in parts of the world.
There's no -1 for "I don't get it."
New players enter the market, change the landscape, the old players adapt or die. Isn't this how it's supposed to work?
That reminds me, the ol' HTC Touch Pro is due for retirement soon...
crazy dynamite monkey
HTC seriously underestimated the power of their Android enthusiasts. They went the direction of Moto and started locking everything down. Every Android enthusiast before that point went around telling _everyone else_ to get an HTC. Once they screwed that vocal minority, everyone started pushing Samsung. Samsung doesn't cryptographically sign their bootloaders, meaning they can be unlocked without some big-brother style registration. This means Android enthusiasts push Samsung now.
Never underestimate the power of an enthusiastic geek.
A lot of business writing is poor, but Michael Porter is the exception to the rule – and I think his 5 force analysis comes into play here.
Basically, HTC is in a highly completive market with low barriers to entry. It’s hard to make their phone unique – anybody can use Android – so basically they are in a commodity market where they have to compete on price. (and by price I mean value. Honda and Toyota thrived for years offering basic, commodity cars. Nothing exciting but they did give you value for your money.)
On the other hand, Nokia offers the best Windows 8 phone. If you like that OS you almost have to go with Nokia. Gives them a little pricing power.
http://en.wikipedia.org/wiki/Porter_five_forces_analysis
More Apple ads and FUD disguised as news.
Thank you Mr. Shill. Can I have some more!
I used to love HTC phones and sought them out as well-built and designed devices. I really wanted a One X, but their insistence on selling it without a removable battery or expandable memory was a turn-off. Same thing with the new Google Nexus phone coming out next week. I want a new phone. I want an android phone. I don't want a sealed, non-expandable black box. If I wanted that, I'd buy from Apple. At least with them, I can get a really good warranty and support program.
is that you end up trying to differentiate primarily in hardware or price. You're limited as to what you can do on the hardware side by an OS you don't control. There can only be so many successful players in a market like that.
People made true on their promise to never own another HTC phone, after the ongoing disaster with the Thunderbolt... still no official ICS, and it's well into JB time!
I would have already bought a HTC One X if only it had an SDCard slot. This is the number one reason I am still using my old Nexus One phone with a 32GB SDcard. Reason number two was the non-removable battery.
I suspect they did this because they thought "Cloud storage" would be good enough.
I work for a major "Cloud storage" provider, which is exactly why I don't want my data out on the cloud. You should be able to read between the lines to figure out what I'm trying to say here.
This is what Microsoft has failed to realize, and what Samsung and Apple have capitalized on.
They don't sell the OS, and they don't sell the company brand name. iOS updates aren't even tied to hardware announcements anymore. Samsung never even mentions Android or Google in their Galaxy S3 ads. They barely mention the name "Samsung".
They sell the device itself. When the average person walks into a store or clicks through a new contract online, they're looking to buy the new iPhone, not an iOS device or an Apple device, they want an "iPhone". /. of course, in its geeky obsessery over software and pastime of using microsoft as a punching bag, usually misses this. But HTC and Microsoft has missed it as well. No one's going to ask for a "One X" because what the heck is that? No one wants a "Windows 8", because who cares about the OS anymore besides nerds? If Nokia and HTC and Microsoft want to get back into the game they need to start highlighting and marketing their devices. They need to make people want a Lumia, or a new Surface, or a new... a new device brand name altogether for HTC.
Just like people don't buy a Ford, they buy a Mustang, people also don't buy an Apple or a Microsoft. They buy an Ipad or a Nexus 7.
I love my HTC One. For many years now, when my cell phone battery goes bad I cannot find one from qualified sources, and the made-in-China crap available on eBay doesn't last a month. Besides, the phone tech is soo outdated I want a new phone, and my provider's plan "forces" the upgrade to be almost free. As in beer, anyway. The One has more memory than I'll ever use, and I have it automatically uploading to Google and DropBox so if I have to delete photos I already have them saved in multiple places.
One reason I chose HTC was their support for professional cycling. So I was a bit pissed when they dropped the team. Now that the sport is eating its tail (I refer to the Lance Armstrong debacle) it will be even harder to get major corporations to sponsor teams. Most recent example: Rabobank, not only a team sponsor but a major sponsor of the Tour of California. Their guy won this year, and now the team is gone. Sad.
Gary Dunn
Open Slate Project
Losing volume is bad and all, but what effect is this actually having on their profits? When the numbers were reported last quarter, it was estimated that Apple was bringing in 77% of smartphone profits, Samsung had 22%, HTC had 1%, and the rest were in the red with a net loss. If HTC is still profitable then they may very well still be in a better position than some of their competitors who have been losing money hand over fist despite (and in some cases because of) shipping more units.
Note: I'm not defending them or suggesting they're profitable. I'm simply turning the discussion from volume to profit.
If something declines by -43%, you're counting up, not down.
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What is killing HTC is that:
1) They did not get their flagship devices out fast enough.
2) Their high-end devices are not on enough USA carriers.
3) They didn't advertise enough.
They make really good phones both in the past and present. Samsung is just railroading them by getting their high end model on almost all the carriers and then absolutely blanketing the market with effective advertising.
I will be seriously disappointed in consumerism in general if HTC shuts down, they do really solid and impressive hardware, and make outstanding changes to Android to make it more effective and more accessible. People go look at their stuff, it's seriously competitive with Samsung's stuff, and it's better supported after release.
I have a Samsung Galaxy NOTE 1. I went to that from an HTC phone - and the reason I chose a samsung was the Battery life.
I have a Toshiba AT330 - an AWESOME device with Incredible battery life - and a Sony S Tablet - with Quite adequate battery life.
A few times I have looked at HTC's but the battery is always smaller than the other phones - and for me - whiles there are other must haves (memory card slot, good camera, FM radio) a better battery is compelling.
I cant say why others dont buy HTC - but thats why I moved off them.
Our company is moving from Sprint to AT&T and we looked at both flagship Android phones (the One X and the S3) ... it was pretty simple - Samsung makes a better phone for our needs:
The whole non-user-replaceable battery deal (a first for HTC in this gen of phones) is beyond Apple-lame...why clone that feature? For the amount of use we put into our units, batteries need to be replaced...I already have an extended run battery in mine...
Lack of SD card. Portable is better, but I've heard AT&T was the driver on the lack of SD card slot the One X (since the Sprint variant does have one) ... but they let/wanted the Galaxy to have it?
At the time I was phone shopping last year, there were no keyboard-phones that had specs near the GS2. The evo3d came out awhile later but 3d on a phone isn't really a killer feature.
The GS2 is reliable, and hackable. Without competitors offering something to differentiate, I went with Samsung.
HAD HTC offered a competitively powerful phone with extra functionality (like a keyboard), I would have gone for that.
Hopefully they'll pull through and survive to the next lineup. I'd still like to see a keyboard phone for the next gen.
At least that is what I thought until I had to suffer with the thunderbolt. What a piece of crap. I will never buy another HTC again and have been actively steering people away from then for well over a year now.
I suspect they did this because they thought "Cloud storage" would be good enough.
I work for a major "Cloud storage" provider, which is exactly why I don't want my data out on the cloud. You should be able to read between the lines to figure out what I'm trying to say here.
Plus, AT&T will eventually kick everyone off of the unlimited plans... I got escalated to 3 levels of management, until they said I reached the top level of customer facing management. They told me that simply connecting your phone to a TV with HDMI out is considered tethering!!! They also said simply streaming LOCAL video to your TV with DLNA over wifi is also considered tethering!!! I argued with them for like 5 hours over several phone conversations. (All of which I recorded). I pointed out I only used 3 gigs of data this billing cycle, and they told me they don't care how much data I used, tethering is tethering. Now had I actually tethered and got caught, I would have no problems, but I actually never tethered my phone. I got them to admit that their backend software is 100% bug free, and that their system can 100% detect "tethering". They told me that their system can detect when I use DLNA, when I connect HDMI, etc.While I doubt that is true, when I asked them to show me evidence that I "tethered" they refused, and said that it proprietary information. They told me I have no recourse, as their system is 100% bug free, and is 100% reliable, and 100% accurate. When I pointed out that if I use wifi/DLNA to stream content to my TV, there is ZERO data going on AT&T's mobile network. They said they didn't care, and that was irrelvant. They said that is still tethering. At one point they told me that even if I was right, they reserve the right to modify my plan without my consent without explanation, at any time.
It serves HTC right. Hopefully they OneX taught them a lesson, and next year's models will have batteries that end users can swap/upgrade, microSD sockets, and real two-stage camera buttons.
Seriously. Name one single thing that makes the HTC OneX a better phone than the Galaxy S3. Nothing. Nothing whatsoever. If HTC had given it a two-stage camera button, or even any dedicated camera shutter button AT ALL, at least some people would have been left wringing their hands and agonizing between it and the S3. They didn't, so that's one opportunity to differentiate themselves for roughly 17 cents that HTC squandered.
The OneX has a sealed battery. Right there, they've instantly written off anyone who won't buy a phone that can't be used with a 2800mAH+ battery, and anybody who expects to be able to swap batteries at will. The Galaxy S3 allows you to do both. The OneX allows you to do neither. Strike two.
The OneX doesn't have a microSD card. The Galaxy S3 does. Once again, for the price of something that costs about 12 cents in HTC quantities, they blew it with a large segment of the Android market who won't even give a phone that lacks microSD expansion capabilities a second look.
Let's not forget HTC's nasty habit of releasing monolithic kernels that can't be built from source because the proprietary bits were just ripped out before they shat the source onto the curb and said "here it is". Samsung cleanly separates out their proprietary kernel code as proper loadable kernel modules, just like god and Linus intended. However, I'll only count this as a half-strike against HTC, because historically, they DO at least tend to release new kernels in half the time (or less) that it takes Samsung to release new loadable kernel modules for new kernels. This is a prime example of an area where HTC could spank Samsung... if they were to commit to separating out all of their proprietary bits as proper loadable kernel modules and released automated builds more or less immediately upon getting their hands on Google's new source (and in a "rapidly timely manner" if changes had to be made to fix problems with the automated builds), they'd have a HUGE competitive advantage over Samsung in this regard. They could just release them as unsupported early-access betas, and treat the users at XDA like a vast unpaid QA program.
It's not like HTC is uncreative. The Evo 3D had a very cool & compelling feature. It might not have been all that useful in daily life, but it was definitely a cool feature to have. I know lots of people who didn't really USE it, but I know of very few who genuinely wished their phone didn't have that feature at all. Most of the complaints about it were due to some of the hardware design compromises that were made to keep the cost down by limiting the resolution and bitrate at which you could capture in stereo.
Anyway, the point is that HTC decided to rest on its laurels and release a phone that doesn't suck, but doesn't really do anything BETTER than the Galaxy S3 does. It's basically the same price, targets the same market, and offers nothing to let its owners stand in front of a group of S3 owners and proudly say, "My phone does ______ better than yours does." In the Apple universe, annual incremental upgrades are doled out as the norm, and users applaud politely & line up to buy this year's refinement. In the Android universe, you have to either knock people's socks off and delight buyers every single year, or be content to sell phones that are basically 'free' no-name commodities.
Lest anybody accuse me of being a Samsung fanboy, I'll be the first to say that I *want* HTC to make phones that beat the crap out of Samsung's, because then Samsung will turn around and try harder to make phones that beat the crap out of HTC's. Then I want Google to use Motorola as its bully pulpit to pull the rug out from under both, and raise the hardware stakes even higher with phones that have unlocked bootloaders & make Samsung's and HTC's flagship models look like antiques, the same way the Nexus One did to the phones that came before it.
Android is not making money
You know, this is an interesting inversion of the Broken Window fallacy.
In the former, you destroy real value to make imaginary dollars move around. In this case, we have real value being created each time someone finds the software to be useful, even though most players don't earn more than a sliver of profit.
I argued with them for like 5 hours over several phone conversations. (All of which I recorded).
You need a life, a job and a girlfriend (in more or less that order).
Faster! Faster! Faster would be better!
If they "declined by -43%", doesn't that mean they gained by +43%?
From the Windows Mobile, generic brand days of the HTC Universal (T-Mobile MDA Pro), HTC Advantage (T-Mobile Ameo - 5 inch touch-screen device with a built-in 1.8 inch hard-drive), HTC Touch Dual, and then I moved to Android with them - onto the HTC Desire HD.
All have been great phones in their way (Except the Ameo, which was a lousy phone, but an awesome smartphone in a pre-smartphone world) - and I loved my first step into Android with the Desire HD - a proper flag-ship phone for them, at the time of launch.
But the generic shite they've been releasing recently, with zero innovation, zero risk - it's been cookie-cutter Android phones.
HTC has become a short way of saying 3.7 inch - 4.8 inch touch screen with so-so camera, so-so processor, so-so RAM, no replaceable battery, and no expandable storage. There's nothing really 'wrong' with them, but they're lacking something interesting. For a company that thought "Hey, there might be a market for a 5 inch Windows Mobile 5.0 device wrapped in leather, 2 inches thick, that can only be used as a phone with a Bluetooth headset, with a magnetic bolt-on keyboard" and took the risk to create it in 2007, they've become a risk-averse generic Android manufacturer.
Which is why my new phone is a Samsung Galaxy Note 2 - my first ever Samsung device. It it provides something unique. HTC is no longer unique. They're the beige box of the Android world, currently. I hope they recover - but it's looking unlikely.
I've been a fan of their phones since I picked up their Droid Incredible a few years back. When that died it was replaced with the HTC Rezound. Their interface tends to be better than what other manufactures ruin android with. Plus great feature sets, very solid build quality and a good form factor. I hope they turn around, and not at the expense of their phone quality.
The only other phone that's piqued my interest is the Motorola Droid M, but I already have a phone I like.
for all those urging Nokia to go Android, or lamenting they didn't ?
The Cloud - because you don't care if your apps and data are up in the air.
Thanks everyone for the heads-up.
I have an older HTC smartphone and I really like it. An HTC Hero now way outdated and underpowered. Its small when everyone was going big. It has been very reliable, it uses a pretty standard USB connector that ive never had any problems with.
Compare this to my wife's Samsung Moment, we have had to replace the power adapter 5 times because the little conenctor is just too thin to take the abuse of regular use.
I had been looking at buying another HTC but now I probably wont. It's too bad because I really like my phone and the new HTC's look good.
oldhack: "Security is a waste of money until shit hits the fan. 5 minutes later, it becomes waste of money again. "
More poor incredible 2 (not really that old!) is still waiting on an update to ICS...promised a long time ago...based on my experience with HTC, my next phone will not be from them!
Skype baby, on a Nokia c6-01. full wifi and bluetooth, great camera, good video. turn by turn gps. symbian all the way, it's sweet. 32Gb phone was $150. great voice quality
HTC phones are very good. The only problem with them that stands out above any others, is their lack of updates to the phones they offer. Their product line seems to come with 1 major android update and then they drop maintaining it and move onto the next model. Most of their phones (after their latest updates to them) at this point are running pre ICS despite being able easily run JB. Some companies, like samsung, have maintained updates to their phones making them or other alternative companies much more desirable. Android itself has undergone alot rapid change and companies like HTC that don't work on keeping up with android releases for all but their newest phones are going to loose all desirability.
http://interserver.net/
I agonized between the GIII and the One. I loved my EVO, but hated its battery life. It was a real eye opener to have a phone die at 2pm because its battery wasn't big enough. After hearing that HTC thought that people wanted thin phones, not ones with big batteries, that pretty much helped me decide. But, man that HTC One looked nice....
HTC has terrible distribution channel. In many countries new HTC phones appears 7 or 8 months after launch, meanwhile you can purchase iPhone pretty much everywhere 3 months after launching. I sent few e-mails to HTC complaining about it and got not a single response.
why oh why is double negation used, supposedly unconcious, in articles like this, where i'd assume an intelligent author. a decline of -43% means and increase of 43%. doesn't anybody get that? it's like the "oh we got -70% off the price" sale bull shit. come on peeps, think it through and accept that a negative decrease means an increase. this ain't geekory biatch!
RIM is losing ground, but it has the BB encrypted messaging services, and millions of users worldwide are need that particular service.
Nokia, on the other hand, has the brand "Nokia".
HTC is losing more ground than Nokia or RIM simply because of bad designs.
HTC has neither a strong brand name like "Nokia" nor BB's worldwide encrypted messaging service.
Muchas Gracias, Señor Edward Snowden !
My best friend dripped her s3 from her sweatshirt pocket to then ground when sitting down in my car, her screen is spiderwebbed now.
My neice dropped my evo 4g LTE from my parents upstairs to down onto the dining room table (appx 10 feet) and there's not a dent on it.
One persons experiences.
I had an HTC Desire HD, which came out in October 2010. It was the phone of the moment. Bought an extra battery for holidays and it already came with an 8GB sdcard, very very nice. I bought it in February 2011. In October 2011, Ice Cream Sandwich came out. So, the actual model was 1 year old. Time passed. It was unclear what the update schedule was. Then, in April 2012 or so, it was there: "Yes!", HTC said. "Desire HD will be getting the ICS update!" Finally! About friggin time. May... June... July... HTC: "Oh, no, the best experience is with Android 2.3.x, so we won't update the Desire HD to ICS." Fuck you, HTC. Fuck you twice. I gave up, rooted my DHD and later on I had a fully functional Jelly Bean even. That was the first and last time I got an HTC. I also managed to break it (dropping it from the 3rd floor balcony is a bad idea) and have now moved to a Galaxy S3, since I'm so content with my fully functional Samsung laptop (running openSUSE). I'll let my wallet do the talking and looking at HTC's decline, I'm not the only one.
Here's the secret to immortality:
Having travelled and lived thru europe it is not how they advertize iz. For example in France they say "solde ! 20, 30 or 40%!" or "-20% , -30% ou -50% sur les prix!" which is the equivalent of "20% off" and "-20% on price !". I never ever saw "-20% off".
Why is nobody reporting on Apples massive losses in marketshare even after the launch of the iPhone5 where are the articles calling the iPhone a failure, and the end of Apple.
Seriously 23% to 15% that is pretty serious.
I have a htc one x, and have never used 'cloud storage'. The one x comes with 32gb of ssd.. if you actually burn through that quickly in a fast way that doesn't lend itself to dumping data onto another machine at home between uses, I dare say you're probably using a phone for something it shouldn't be.
Not to mention, the read/write speeds of sd are shite compared to ssd, so when it does come time to dump the contents of the sd card, you have a long wait ahead of you.
In 2 years you will have a choice of iPhone or Samsung. Choose wisely.
I will NOT buy a phone that does not have a card slot. I do not want to store my stuff in the cloud, and then have to use my precious limited data just to access it.
Fuck you, Google and the Carriers, for strongarming phone manufacturers into removing the slot.
Hey HTC, make all of your Android phones AOSP "Nexus" phones and profit!
I switched to Samsung from HTC for the reasons stated above (removable battery, SD card), and also because the build quality of my last HTC phone was very poor. Another factor: I may have considered the OneX, but my carrier got the S3 immediately and there's no sign of the OneX...
Every HTC I tried to get to work with windows 2003 server exchange would fail, it refused to work no matter what.
You'd have to use touchdown to make it work, which pissed off a few customers as it advertises exchange support.
They didnt fix this in newer phones, either.
At that point, why buy an HTC when you can get a samsung or moto?
This isn't surprising; just the laws of economics at play. When you have dozens of HW vendors using the same OS, there is nothing much to differentiate them in the market, and every competitor simply dilutes every other as well as the Android brand itself. Two years ago in Taipei there were over 200 tablets and handsets announced sourced from E Asia (Taiwan, China, Korea). This occurring as Apple was still in ascendency, but far, far more importantly dominating market unit sale profit margins! This latter gets dismissed by too many Android ideologists but economically and financially it's THE metric to look at because it directly indicates which company can afford the best R&D for new models and which company is in the best financial shape. Simply being based in Asia (Taiwan, like HTC) DOES NOT mean you can get by with radically smaller profit margins "because it's cheaper there". I've lived in Taiwan and while many things are a bit cheaper for individuals than the US (things like transportation, healthcare and food), the things that matter for a corporation's health are only marginally cheaper (0%-10% at best).
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but carriers also suck big fat elephant balls.
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We now return to our regularly scheduled /. rants and raves.