HTC's Financials are Getting Worse; Things Look Very Grim and Investors are Bailing
Things are looking pretty dire for HTC, the former darling of the Android smartphone industry. Their newest financials were revealed and things have gone from bad to worse. Our previous report indicated that profits had slipped by a large margin, but now their revenues have dropped significantly as well, and investors ran for the hills.
HTC's profit dropped by 58% in the second quarter, as we reported previously, but in the third quarter, not only did they lose profit, they also lost 23% of their sales and their revenue dropped by 45%. Because of these grim numbers, investors have been more than skittish. HTC's stock price has dropped by 50% over the year, and shaved off over $1 Billion dollars from their market cap.
They are trying to offset these massive losses in Europe and the United States by moving into the growing Chinese and Indian markets, but their gains there have not offset any losses yet. The main problem isn't that they make poor products. The HTC One series, and especially the One X, have been getting excellent reviews across the board. The problem is branding presence. Right now, Apple's iPhone and Samsung's Galaxy series are dominating the landscape in terms of consumer attention.
Could HTC be the next big company to start crumbling like RIM and Nokia? What would it take to turn things around?
Source: HTCOneForum via BGR