fifth global manufacturer of mobile tightens biggest rivals Apple and Samsung
HTC, the phone manufacturer fifth, suffered a 79% drop in quarterly profit as the popularity and sales force Apple and Samsung continue to push their smaller rivals.
third quarter net income dropped New Taiwan dollars (4.9 billion pounds 104m) in the three months to end-September, from NT $ 20 billion in the same period last year last checked according to the results published Monday. Turnover decreased by 48% to NT $ 70.2bn, well below analysts' expectations of NT $ 75 billion.
A year ago the Taiwanese company has been enjoying a record quarter with revenues of NT $ 136bn, through mobile phones sold as the HTC Desire and Sensation.
HTCcomment when audited results are published, but an email from the CEO, Peter Chou, employees in August urged staff to "kill the bureaucracy." He complained. "We have people in meetings and talk all the time, but no decisions, strategic direction and sense of urgency "
Salesflagship HTC, a series that began in February, was released as Apple and Samsung spend four to six times more on marketing to ensure that the iPhone 5 and Galaxy SIII dominate market while heavily subsidizing its older models, according to analyst Pierre Ferragu Sanford Bernstein C broker.
- "HTC is in a cycle of loss of market share and erosion of gross margin, reflecting the continuing loss of traction with consumers," said Ferragu in a note. " We see a market where Apple and Samsung hard struggle in terms of sales and marketing execution to defend their respective positions, both with the support of their phones launch aggressive headlights and solid models support the distribution elderly. This dynamic distribution almost no room for HTC to remain visible on the market. "
- Share
- HTC in the global smartphone market by shipments fell 5.8% in the second quarter against 10.7% a year earlier, according to Bloomberg. The company has launched its first Windows Phone 8 models in September, most of the high-level launch before Christmas, but the operating system Microsoft has yet to establish itself as a serious player in third after Google's Android and Apple's iOS.
HTC has seen falling sales prices of their phones, as he tried to enter the Chinese market with strong growth. Approximately 30% of exports to China, but price pressure means that only 20% of turnover.
Carolina Milanesi, analyst at Gartner, smartphones, another research firm, said that HTC had to concentrate on sales to large companies "business" where "Bring Your Own Device" (BYOD ) policies were in place:. "It seems to me that the next Android tried to go to the lower end of [market] share, but does not work well, and now want to return to their base should consider becoming a facilitator Android BYOD - focus on Android for a better platform for the enterprise. "Samsung has tried to do, but so far" do not raid much, "he suggested. "I think HTC would have a better chance than that, and that's where it started," said Milanesi. "They knew how." HTC started as a contract manufacturer of private label in which Microsoft Windows Mobile smartphones, and has created its own brand. Milanesi suggested that now your Windows Phone models was his salvation: "Microsoft [Windows Phone] The phones are good, but they can be swallowed in the Microsoft PR machine must push HTC Innovation envelope .. I think this way have not had a first in the industry for some time. They used to bring connectivity and integration, but they did not from time to time. They should be more vocal about their brand, consistent in their message -. good to talk more about the company and differentiation in their devices, the construction of a story about who we are as a company "
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