Huge Slide in HTC Profit – 79% Drop Noticed
Because of stiff competition from Samsung Electronics and Apple, Inc, HTC is facing the heat. According to the latest update, HTC Corp has posted lower profit in this quarter in the last six years. Last year, the quarterly profit was 18.64 billion New Taiwan dollars, which was 79% higher than the present figure of 3.9billion.
Wall Street Journal conducted an analysis by six analysts and they explained that revenue of HTC fell from $135.85 billion to $70.2 billion, which is a drop of 48%. The net profit forecast is N$5 billion, which is again below average.
In 2010, the company was the largest manufacturer of Android Smartphones in terms of shipments, but the drop in sales has been noticed consistently since quarter four of 2011, because the competition from the other market leaders such as Samsung and Apple has increased. In fact, Samsung became the biggest vendor of Android devices in the United States since last year, overtaking the dominance of HTC. This is evident from the fact that Galaxy S III is ruling the world as the best selling Smartphone and Samsung has still a lot to offer in the future.
On the other hand, Apple has reported to receive 2 million+ pre-orders for its latest Smartphone iPhone 5 right on the day it was made available in the market. However, HTC released two Smartphones last month based on Windows 8 operating system, but the analysts are not sure whether these new devices will be able to overtake the dominance of Apple and Sumsung handsets.