Yesterday Apple posted some pretty impressive Q2 numbers, but not every tech company was so lucky. In fact, HTC reported a whopping 70% dip in profits which, so says HTC CEO Peter Chou, is largely because of the iPhone 4S’ success in the US.
“A major challenge we faced last year was the big drop in sales in the U.S. because of competition from the iPhone 4S,” Chou said, revealing that the company used to earn over 50% of its revenue from the US market. This year, however, HTC saw its profit in the first quarter of this year drop 70 percent year over year to $151.5 million.
What’s more, Chou is aware that HTC is most likely unable to regain the marketshare in the US that it once had. Instead, he hopes to fill that void with the emerging smartphone market in China. Furthermore, HTC is reportedly in cahoots with Facebook to come out with a Facebook branded phone that will “enable and integrate all functions available on the social networking site.” These new endeavors, if successful, will mark a “reborn” HTC.
I must say I’m surprised HTC did so poorly. The company makes some pretty awesome devices, but I guess they simply couldn’t compete with the iPhone 4S here in the States. I’ll definitely be interested to see how the HTC One X and One S perform – they look pretty great to me!