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HTC cuts forecast 23%, expects sales to shrink

updated 12:05 pm EST, Wed November 23, 2011

HTC dims expectations as Android dream cools

HTC acted as a possible bellwether for Android on Wednesday after it cut its outlook further beyond earlier predictions. The company in a filing lowered its revenue estimate by 23 percent to give it the same $3.4 billion in revenue as a year ago. It also now predicted the first sequential slowdown in sales in roughly two years.

The company dropped strong hints that Apple, and likely also Samsung, was directly responsible for the look. While it like others partly blamed the economy, it also blamed "market competition." Assumptions from a forecast just weeks ago "are no longer applicable," HTC said.

HTC has new phones on the market in the fall, such as the Vivid, Rezound, and Sensation XL, but it's currently facing one of the stiffest fields of competition to date. Samsung has both brought the Galaxy S II to the US and is about to deliver the Galaxy Nexus, getting an Android 4.0 device on the market before HTC was even allowed to see the code.

Apple's iPhone 4S may be the deeper issue. Along with taking attention away from HTC's own releases as usual, it's also now available on Sprint. The CDMA carrier has often been seen as HTC's safe haven in the US, since it not only gives HTC phones like the Evo 3D the most publicity but was considered one of the least likely to get an iPhone given its smaller size. Apple has historically had the most popular smartphone on a given North American carrier and is believed to already be relegating HTC to a minority on Sprint.

HTC's slump could also signal trouble for Android as a whole. As second only to Samsung in Android, a slowdown on its part affects the platform as a whole.




by MacNN Staff

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Comments

  1. climacs

    Joined: Dec 1969

    +13

    where's wrenchy?

    .

  1. bigmig

    Joined: Dec 1969

    -4

    Drooooid

    Nuff said.

  1. iphonerulez

    Joined: Dec 1969

    +9

    If WP7 smartphones ever

    start selling to any degree, it could be a real downer for Android smartphone sales. However, carriers are going to have to seriously start pushing WP7 smartphones to consumers for any hope at all.

  1. SockRolid

    Joined: Dec 1969

    +5

    HTC now. Samsung next.

    So Samsung is the last successful Android handset maker? Well Google's acquisition of Motorola Mobility could change that. Google blew $12.5 billion on that purchase. That's roughly a year and a half of profits, and Google isn't going to just use the acquisition for its patent trolling potential.

    Next year, Samsung might not get the latest Android source code until after Motoroogle ships their next phone. No dessert for you, Samsung.

  1. RoboBobo

    Joined: Dec 1969

    +6

    HTC is a WP7 Vendor

    So, HTC is losing sales despite the fact that they sell both WP7 and Android.
    Maybe they'll license iOS - oh that's right, it isn't a choice.

    Competition happens, Samsung is a component manufacturer that makes their own memory, cpu's and screens - they should be able to be quite competitive - and, it turns out they are.

    HTC did the right thing - growing as much as they could and riding the Android wave as long as they could - but in the end Samsung has a lot of advantages.

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