HTC profits dive 57% due to Apple injunction and economy

To say that HTC and Apple are friends would be the understatement of the century. The two companies have been at each others throat for so long now even I’m starting to wonder if it will ever end. HTC’s strength is that it has a ton of phones on many different carriers. Apple’s strength is…well, that it’s Apple. And it looks like HTC might be getting beat this time around.

According to Reuters, HTC saw its profits get cut by more than half since this time a year ago. There have been several factors that are being attributed to this huge loss for HTC. They are called Samsung, Apple, and the economy.

Samsung has a had a lot of success with its Galaxy S line of devices. The fact that Samsung is HTC’s rival in the mobile industry doesn’t help any. With each of release of the popular phones, HTC has fallen further and further behind. Add in the iPhone 4S and you’ve got a recipe for some pretty bad profit loss. Apple further contributed to the decline after winning an injunction against HTC that got phones delayed from entering the US. KGI Securities analyst, Richard Ko said the following on the matter:

In the high-end market, there are Samsung and Apple. In the low-end market, even though HTC wants to gain traction in China, its phones are price uncompetitive. HTC’s scale and margin are a lot lower compared to Samsung and Apple. It will see much pressure in the short to medium term

It’s interesting and sad to see how far HTC has fallen over a years span. Don’t get me wrong, I know a lot of people that have HTC phones, but a good majority of them have confessed to wanting to switch to either the Galaxy s3(Samsung) or the iPhone that is rumored to be coming in the fall. This is a perfect example of how volatile the electronics industry can be.


Via: Reuters

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  • JeffWilliams

    I think you meant overstatement.  Understatement would indicate they were lovers or something.  Like, “To say he loved his girlfriend would be an understatement” but “to say they are enemies would be an understatement, those dudes tried to kill each other!” would make more sense.  Not trying to nitpick or anything.  I’m just throwing it out there.  Good article, though, overall.

  • @JeffWilliams No Jeff, Understatment was used correctly. Overstatement is the exact opposite of under statement, which wouldn’t fit into context.