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HTC’s Q2 Profit Drops By 83% Despite Having Success In HTC One

A s per the recent audit by HTC, it’s second quarter profit has dropped by a whopping 83%  showing it’s miserable situation in the smartphone market again. HTC has been facing stiff competition in the smartphone market from its leading competitors like Samsung, Apple and Nokia for a while. Now the recent report has shown it has only become worse. This report said the Taiwanese mobile making major has a profit of US$ 40 million  on the revenue of US$ 2.34 billion in the April – June quarter.  The company has also predicted in the report that its third quarter revenue will drop to further and will be between  US$ 1.68 billion to US$ 2 billion. It has made this prediction keeping in  mind that the smartphone sales volume have already become saturated and hence the chance of further  growth in sales is almost impossible, rather it will go down.


HTC, the pioneer in manufacturing android based smartphones, has been experiencing a constant decline in its sales since 2011. HTC started manufacturing android smartphones in 2008. But just after a couple of years, its market share has started going down due to the arrival of smartphones of several other companies mainly from Samsung and Apple. HTC has also set the target of capturing 15% of smartphone market early next year, but it has failed to achieve that. It’s internal problems (like that technical problem happened with HTC One and delayed it’s shipment) has made the situation worse. HTC One was the flagship smartphone from HTC. HTC has hoped to win back it’s lost ground in smartphone market by this HTC One, which was initially scheduled to hit the market in March. But a technical problem in the production had caused a delay and then it was made available in late April. But by the time other high-end smartphones, specially the Samsung Galaxy S4 had already arrived and has captured HTC’s market. Previously it was told by the company that it  reportedly shipped five million HTC One’s within the first month of release, which is not an impressive figure at all because  Samsung had shipped more than 10 million handsets in the first month.

The arrival of various low and mid range smartphones has also troubled HTC. It is in process of launching several other smartphones like the HTC One Mini and some low and mid range phones as well. It is hoping that by the end of the year it can reconsolidate its market share.

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