HTC: The iPhone Has Won, We Can’t Beat Apple In America


HTC admits the iPhone 4S killed its profits in the last quarter.
HTC admits the iPhone 4S killed its profits in the last quarter.

While the vast majority of the world’s tech press was focused on Apple’s record-breaking quarter yesterday, HTC quietly announced its own figures. Unlike Apple, the Taiwanese company reported a huge 70% drop in profits after raking in just $151.5 million during the three-month period. And it says the iPhone 4S is the main reason for its dismal quarter.

HTC Chief Executive Peter Chou specifically blamed the iPhone 4S for the company’s poor financial results during an analyst briefing yesterday. While Chou remained confident that the company had better times ahead, he admitted that there’s no chance it will see a return to the times when it took 50% of its revenue from the U.S.

“A major challenge we faced last year was the big drop in sales in the U.S. because of competition from the iPhone 4S,” Chou told analysts at the briefing, before revealing HTC’s net profit during the first quarter of 2012 had dropped 70% year-over-year to just $151.5 million. In comparison, the iPhone 4S helped Apple secure profits of $11.6 billion during the same three-month period.

HTC is hopeful that its latest family of One smartphones can help turn the company around this year. Chou said the devices are the dawn of a “new” HTC that will better execute sales and marketing of its products. He’s also optimistic that China will help make up the revenue that the company has lost from the U.S.

[via AppleInsider]

  • Ernesto Miquel

    I think HTC’s drop in sales has more to do with Samsung than Apple. HTC used to make the best Android smartphones, but now if you want the best you choose Samsung. I think their problem was inside the market of Android phones. Also, the iPhone is beating everyone else, but the problem of HTC was losing their place as the best iPhone rival.

  • Steffen Jobbs

    I also tend to agree that HTC was beaten by Samsung’s multiple product lineup and lowered pricing. The iPhone 4S did have strong sales, but that’s not what directly hurt HTC. Samsung is the strongest Android smartphone vendor with the most resources and will likely remain so for the next couple of years.

  • Mark Proper

    I’ve got to agree. If it was iPhone sales, the market share for iPhones would have increased more significantly than it has (it’s been relatively stable).
    While the iPhone 4S obviously has an effect, I think the competition from other Android manufacturers (Samsung in-particular) has more to do with HTC’s profits.

    Also, the title of this article is painfully misleading. I know it’s the “cult of mac” site, but it’s even more fanboyish the site normally is. I also love the comparison of HTC’s revenue (a phone manufacturer) to Apple’s total revenue, which is like comparing apples and space shuttles.

  • ApplePr0n

    I actually gained respect HTC a little now, they don’t copy off of Apple like Samsung and they admit that Apple is the industry leader and they acknowledge that

  • jshtex

    Yeah, you guys probably know more about HTC falling sales than their Chief Executive.

  • jshtex

    Yeah, you guys probably know way more about HTC’s slumping sales than their “Chief Executive”. You did read his quote right? Or did you skip straight to the comments to post why it wasn’t Apple?

  • iwearplaid

    Wait… nowhere in HTC’s remarks could I read the sentiment “The iPhone Has Won”. Could this… could this be one of those sensationalist headlines? No, it… it couldn’t be.