Western markets proving just too tough
Taiwanese smartphone maker HTC has revealed how its Q1 revenues for 2013 could be down 17 per cent and that profits could be wiped out, thanks to overwhelming competition from rivals Samsung and Apple.
The company’s gloomy outlook comes amid plans by HTC to introduce a five-inch flagship in the West, though otherwise it says it intends to focus on emerging markets such as China in the future to reverse the decline.
According to IDC, HTC hit is peak in 2011 with 10.7 per cent of global smartphone shipments in the second quarter, but today that share has fallen to less than 4.3 per cent. The company has also fallen out of the top five manufacturers.
Some analysts predict its fortunes could revive this year if only because it has fallen so far behind, though much will ride on its new five-inch device code-named ‘M7′ due to be launched in a fortnight’s time in New York and London. The launch will give it just a few months lead over arch rival Samsung, due to launch its Galaxy S4 in April.
Earlier this month HTC reported a massive downturn in Q4 with net profits for the period of T$1 billion ($34 million; £21 million), 90 per cent down on the same quarter for 2011 and marking the manufacturer’s smallest quarterly profit since 2004.