HTC profits drop to record low

HTC have documented record low profits in the first quarter of 2013. Delays in production of their upcoming flagship smartphone have not helped.

HTC have explained difficulties making camera components for the HTC One device, forcing them to push back their full launch from the first quarter until the end of April.

The delay has pushed quarterly profits down to $2.85 million and sales to $1.4 billion. HTC are fighting to keep market share against rivals Samsung and Apple who are dominating the market. They had 4.6 percent of the global market share for smartphones in 2012 while Samsung doubled their market share over the same period.

HTC March sales have dropped 50 percent year on year. HTC shares have lost 60 percent value in the last 12 months.

They have a lot riding on the success of the HTC One, which they hope they can release very soon, driving sales and subsequently profits. They are working on a new phone with Facebook, called the HTC First which will feature their new application on the home page.

Much of the blame is being placed on marketing, and in response the company have hired a new chief marketing officer, Benjamin Ho. Ho spoke to reporters in Taipei saying “There has never been lack of innovation for HTC. We just don’t talk about it enough.”

HTC will face tough sales for their HTC One, as Samsung are launching the new Galaxy smartphone soon, alongside the new Blackberry 10.

Kitguru says: HTC face a tough climate in 2013.

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