HTC revenue dives 30% as phones fail to impress

Dec 6, 2011
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HTC revenue dives 30% as phones fail to impress

HTC saw device sales revenue dive 30-percent in November 2011, with the company's struggling to maintain consumer interest as it heads into the all-important holiday sales period. HTC's figures [pdf link] indicate revenue in November dropped to NT$ 30.942bn ($1.03bn) from NT$44,114 ($1.46bn) in the previous month. Although the company has not given a reason for the slumping demand, it's likely that an increasing number of me-too devices like the various Sensation iterations have failed to find traction in the market.

It's not just November being a patchy month, either. Compared to November 2010, which saw revenues of NT$38.48bn ($1.27bn), HTC's numbers are down almost 20-percent.

As we wrote last month, HTC needs to rethink the elements that differentiate it from market rivals if it wants to maintain or improve its position in the smartphone and tablet market. The company lacks the devoted following of Apple or the solid manufacturing base of Samsung, and has made vague attempts to distinguish itself with custom software and services.

However, those attempts have been half-hearted at best, and the value of the Sense UI grows less relevant as Google improves Android's native interface. HTC has warned of flat Q4 performance, and said it intends to "focus on the product" in 2012 to turn its fortunes around.


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