HTC Cuts Shipment Outlook, Suspends Development on Some New ModelsBy: Sean Patterson - December 19, 2012
DigiTimes, a Tiawanese publication that monitors technology manufacturing supply chains, reports this week that HTC has shifted its product outlook for 2013, preparing investors for a tough coming year.
Citing unnamed “industry sources,” the report states that the device manufacturer has cut its smartphone shipment increase in half, down to 10-15% from 20-30%. In addition, the company is reported to have suspended development on “a number” of new models that were set to launch in 2013.
2012 was a tough year for HTC. The Taiwanese smartphone maker saw its share of global smartphone shipments fall to 7.3% in the third quarter of 2012, down from 11.8% in 2011. In addition, the company’s profits in the third quarter of 2013 were down 79% from the third quarter of 2011.
Most of the reason for HTC’s poor performance can be attributed to Apple’s continued dominance in the smartphone market, as well as Samsung’s rise this year as the top Android handset manufacturer and Apple’s main competition. HTC’s flagship Android smartphone, the HTC One X, launched on only a few U.S. carriers and failed to gain popularity in the country as Samsung’s Galaxy S III sales began to skyrocket. HTC also released several Windows Phone 8 smartphones which, while scoring high in customer satisfaction, were doomed to relatively poor sales along with other Windows Phone 8 devices.
HTC isn’t alone in its smartphone struggles. Nokia has also bet big on Windows Phone 8 taking off while watching its smartphone market share plunge, and RIM is hoping that its upcoming BlackBerry 10 launch will save it from obsolescence and bankruptcy. Next year will see the sorting out which companies have the designs and technology to challenge the big two of Apple and Samsung.