HTC posts disappointing Q1 2012 results
HTC’s Q1 2012 results reveal massive drops in net profit and handset sales
HTC’s Q1 results are in but if you’re expecting some pleasant reading, you might want to look away now – net profit is down 70 per cent and the company has experienced a 35 per cent drop in handset sales.
Q1 revenues were $2.3 billion, which equates to a 35 per cent drop year-on-year. Net profit followed suit, bottoming out at $148 million – a 70 per cent drop.
HTC said last year that it had lost ground to the competition, following a disappointing Q4 earnings call. The company even introduced a new handset strategy, which involved focussing its attentions on high-end devices, like the One X, in a bid to counter the onset of any permanent damage to its market share.
Speaking at the company’s February 6 earnings call, HTC Chief Financial Officer Winston Yung, said: ‘We simply dropped the ball on products in the fourth quarter.’ Apparently the company’s late-2011 handsets did not meet the company’s expectations.
Will the HTC One X and One S turn around HTC’s fortunes in Q2 2012? Both handsets are very capable devices, illustrating just what HTC is capable of when it pushes itself.
Lets just hope they’re good enough to turn around HTC’s fortunes in Q2 and Q3 of 2012.