Back when Android was still gaining traction in the mobile market, HTC was the Android OEM manufacturer to reckon with. Thanks to Android’s ever growing popularity, HTC had a monumental growth and posted some staggering profits back in late-2009 and 2010.
However, things changed drastically in 2011 as HTC failed to launch a remarkable device, and Samsung won the heart of million of owners thanks to its Galaxy S II. HTC is trying hard to save its plunging profits and market share by releasing the One series earlier this year. However, it looks like things still have not favored the Taiwanese maker.
In an unaudited Q2, 2012 report released by the company, HTC managed to make a profit of only $247.7 million down from a whopping $582.5 million in the same quarter in previous year. The only silver lining here is that compared to the Q1 profit of $150 million, a near about $100 million jump in profit definitely looks good. Revenue for the quarter was around $3 million.
On the other hand, Samsung has released partial financial report of Q2, and the numbers are staggering. The Korean company has had a record quarter and amassed nearly $5.9 billion in profits, all thanks to the strong sales of its Galaxy series of handsets. The company, however, expressed concerns over the weak euro and how it has been eating into its profits.
“Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level,” said one executive who didn’t want to be named as the plan is internal.
“Our smartphones are flying off the shelves, with some outlets reporting 40-60 percent sales growth, but that’s distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro.”
With the Galaxy S III just hitting the U.S shores, Samsung is all set for another record-breaking Q3, while HTC can just hope its profit does not plummet further.
Via – Reuters