HTC On the Ropes Again as Slumping One M9 Sales Lead to Worst April in 6 years

[dgstorm]

It looks like the HTC One M9 is not helping the already beleaguered smartphone OEM. HTC's April revenues nose-dived by 38.6% year-over-year, and poor sales of the M9 are being blamed. After the solid success of the HTC One M7 and One M8, things were looking up for HTC, but their latest flagship isn't making the same waves as its ancestors. Here's a quote with more of the details,

For the month, HTC took in $439.95 million, down from the $719.24 million the company reported in revenue last April. Sales declined 32.26% from the $652.44 million the company garnered in March 2015. An unnamed analyst who toils for Yuanta Securities Investment Consulting Co., says that shipments of the HTC One M9 flagship phone amounted to 4.75 million units for the month. That is a sharp 43.75% decline from the 8 million units of the HTC One (M8) that were shipped in April 2014. It is a 35.71% decline from the 7 million units of the HTC One (M7) shipped in April 2013.

Industry analysts are suggesting that HTC underestimated the bad press from overheating issues which hit the Qualcomm Snapdragon 810 (the chipset featured in the One M9). On top of this bad word of mouth, poor reviews and reluctance from the carriers to order much inventory of the phone may have lead to these slumped sales.

Of course, the other elephant in the room is the runaway success of the Galaxy S6 and S6 Edge. Samsung put enormous pressure on the rest of the Android smartphone industry by releasing a device that really changed up their previous strategy. Either way, things are again looking grim for HTC. It's amazing how many times HTC has pulled themselves back from the brink. Do you guys think they will be able to do it again?

Here's our dedicated HTC One M9 section: HTC One M9 and M9 plus Android Forum at DroidForums.net

Source: PhoneArena

 

[Caesars]

Not to come off as a hater as I'm using the m9 as one of my two phones. But.... It's a sailboat in a world of flagships.

 

[cereal killer]

I wouldn't want to be a smartphone manufacturer nowadays. It's all about Android and iOS, Samsung and Apple. If your outside of those 4 things, you're going to be fighting for 'table scraps'.

 

[pc747]

Not to say I called it, but I think everyone called it.

Half hearted efforts get you half hearted results.

 

[popcenator]

Why is LG doing better at staying relevant? Because they commit to upgrading and pushing the envelope, especially compared to HTC. A great build quality is only part of the full equation and when you have phones much more complete, who's going to choose the one dimensional option? I was very excited for the M9 because I actually really like Sense and their build quality is fantastic, but that deflated when I saw the issues with the 810 (throttling is not a fix, it's a patch) and the poor camera. LG looks like they'll be continuing in the right direction with the G4. And I'm looking forward to seeing what the next Moto X will bring to the table.

on the move..

 

[The Stig 04]

My biggest thing about this phone was size, when I asked them what was up with not bringing the Plus to North America they told me they worked with carrier's to determine the best size for customers, and that's about the time they made me an ex customer. Went and bought a Nexus 6 and couldn't be happier.

 

[pc747]

Why is LG doing better at staying relevant? Because they commit to upgrading and pushing the envelope, especially compared to HTC. A great build quality is only part of the full equation and when you have phones much more complete, who's going to choose the one dimensional option? I was very excited for the M9 because I actually really like Sense and their build quality is fantastic, but that deflated when I saw the issues with the 810 (throttling is not a fix, it's a patch) and the poor camera. LG looks like they'll be continuing in the right direction with the G4. And I'm looking forward to seeing what the next Moto X will bring to the table.

on the move..

Exactly

And you want people to want .... desire your new device. The s6 edge, s6, and the g4 all offer something new that makes me desire it over the phones from last year. Whether it be a new look or new features. With the M8 having a better camera than the m9 (based on reviews), the latest software update, and cheaper, it would be better to buy a m8 off eBay or swappa vs signing a new two years on a m9.

It is safe to say the m9, being HTC is one of the big name, will be the top failed device of 2015. Unless Motorola brings back the old Motorola droid with old specs running 2.1. Think the only thing more disappointing was the pacqiaou mayweather fight because they took 5 years for that pile of crap.

 

[Ollie]

I'm not impressed with the G4 too much either. They pulled an HTC and kept the same design.

 

[shockracer]

I don't think it's a problem of overheating or other poor reviews. I think it's due to the lack of advertising. I see 10 Samsung commercials to maybe 1 HTC commercial. Other phone manufacturers have their name on other electronics, so the names become more recognizable than say HTC which only make phones and tablets, oh and a portable camera.

I come across people so often that just bought a smartphone but have no idea that my phone (M8) was available.

If HTC wants to make it, they really need to pour money into advertisement!

 

[kodiak799]

Sammie's profits have been down, as well. I think we're seeing that users aren't upgrading every year, or even every other year (which is still $200-$300 even with subsidy), because the phones are good enough for 95% of the users.

It's plagued many OEM's for a long time: simply too many models. Your product cycle needs to match the consumer purchase cycle or you spend too much on R&D and realize too little production efficiency.

 

[cybertec69]

I don't think it a problem of overheating or other poor reviews. I think it's fo to the lack of advertising. I see 10 Samsung commercials to maybe 1 HTC commercial. Other phone manufacturers have there name on other electronics, so the names become more recognizable than say HTC with only make phones and tablets oh and a portable camera.

I come across people so often that just bought a smartphone but have no idea that my phone (M8) was available.

If HTC wants to make it, they really need to poor money into advertisement!

Pour what money into advertising, where have you been, HTC is barely breaking even. Also the M9 is just a bad upgrade from the M8. HTC just keeps making the same mistakes, over and over, no wonder all their top people started jumping ship. When a ship is sinking, it's time to put on those life vests and bail.

 

[shockracer]

Pour what money into advertising, where have you been, HTC is barely breaking even. Also the M9 is just a bad upgrade from the M8. HTC just keeps making the same mistakes, over and over, no wonder all their top people started jumping ship. When a ship is sinking, it's time to put on those life vests and bail.

It takes money to make money. How many M9 commercials have you seen? I have seen one on TV since the release. I see at least one commercial for Samsung or LG or Motorola an hour.

Word of mouth is great advertisement but it has its limits, Even sales Associates in cellular carrier stores push Samsung's and Motorola.

 

[kodiak799]

Pour what money into advertising, where have you been, HTC is barely breaking even. Also the M9 is just a bad upgrade from the M8. HTC just keeps making the same mistakes, over and over, no wonder all their top people started jumping ship. When a ship is sinking, it's time to put on those life vests and bail.

Yeah, that's part of it. But realistically, how many satisfied M8 users were going to upgrade after just 1 year? Practically speaking, the market for the M9 is not M8 users, but taking market share from other OEM's (and maybe other HTC models). Keep making the M8 and offer it as a mid-tier device. Apple has understood this for years - amazes me that people want to copy their phones but ignore the business model that drives their profits.

The phones aren't all that different now. Pretty much the most noteable differences among flagships are cameras, because for some reason no one wants to compete by offering choice of screen sizes. And they've all pretty much missed on the user experience - the GUI's are all mostly failures, with IMO the exception of Moto Assist (most, if not all, of which can be replicated with a few apps available in Play).

 

[pc747]

I'm not impressed with the G4 too much either. They pulled an HTC and kept the same design.

I am not against a company using the same design as long as they do not do it 3 straight years in a row (cough) HTC (M7, M8, M9). If it works then expand upon it. Say what you will about the g4 design being similar but they added a dimension even if it is just the leather back covers. All we are saying (or at least I) as a consumer is give us something. We realize we are reaching the point where there is not much else you can do with a phone. I mean we continue to go thin and now we are at a point where manufacturers are having to brag about being a mm thinner. Displays on our phones are better than the displays on some of our tvs, computers, or laptops. Cameras are approaching DSLR levels (though they have a ways to go), unfortunately many of us now will need classes to learn how to take better pictures with our phones.

Maybe we are at our limit and at the point where you are better off upgrading what needs upgrading verses buying new phones, ie Ara.

 

[Jeffrey]

You guys make some good points, but they are from a US prospective. Keep in mind, that the majority of phones are sold outside the US. China being the largest market followed by India and SE Asia.
These folks don't know what a subsidy is. Perhaps they are tired or just can't afford $600-800 for a phone every couple of years. An S6 sells for $800. here.
HTC, LG Sammy and Moto are now competing with a few very aggressive Chinese & Korean manufactures [ Xiaomi, Elephone, Huawei, Umi ] that are putting out top quality devices at $250-400. And let's not forget about the One Plus One.
I think these Companies need to not only rethink thief product, they need to understand who their customers are, where they are, and present an affordable Flagship that meets the Worldwide demand.

As a side note: Our malls have a full floor dedicated to PHONES. Next time I am at the mall I will snap a few photos and you will see how many customers are in the Sammy, HTC LG stores and how many are in those stores that sell sell Xiaomi, Elephone, Oppo etc. You may be shocked..