HTC's Q4 profit falls by 90 percent

The company has to improve its marketing to compete with Samsung and Apple, an analyst says

HTC's net profit for the fourth quarter of 2012 fell by 90 percent year-over-year, as the Taiwanese smartphone maker continues to struggle amid heated competition.

HTC's net profit for the fourth quarter was NT$1 billion (US$34.4 million), down from NT$10.9 billion in the same period a year ago. Revenue was NT$60 billion, a 40 percent decline from the NT$101.4 billion it generated during the fourth quarter in 2011.

For HTC, the fourth quarter was a bad end to a bad year, during which it struggled -- as did many other smartphone makers -- to compete with the increasingly dominant Samsung Electronics, and Apple.

"HTC has wonderful devices, but its marketing execution has been crap," said Malik Saadi, principal analyst with market research company Informa Telecoms & Media.

HTC has recognized its shortcomings in this area and at the end of November the company hired Benjamin Ho as chief marketing officer. His first task is to refocus the company's global marketing efforts.

Ho previously worked at mobile operator Far EasTone Telecommunications, as well as Motorola and advertising agency BBDO.

To turn around its fortunes, HTC will have to make its smartphones more visible in stores, and also increase the commissions it pays to retail staff and better educate them on what it has to offer consumers, according to Saadi, who thinks HTC should also consider opening its own stores.

HTC should also look for more partnerships in the consumer electronics market with vendors that also want to compete with Apple and Samsung, and it might get some help from Amazon, according to market research company CCS Insight.

It has predicted that Amazon will realize that developing handsets on its own isn't viable and will instead choose HTC as a partner, acquiring a stake in the company to secure a long-term commitment.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuessmartphonesiPhoneMobile OSesAndroidfinancial resultsmobileWindows PhoneAndroid OSconsumer electronicshtc

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?