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HTC Revenue Falters in May, Posts Year-on-year Decline of 27%

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Apparently, a Hardan Karman edition of the HTC One (M8) wasn’t enough to save HTC from disappointing quarterly financials. The Taiwain-based smartphone manufacturer reports that revenues were NT21,065 ($700) million, a decline from April’s NT22,079 ($754) take. That represents a year-on-year decline of 27.37 percent. 

The drop in sales is only the latest in a long string of disappointing numbers from the company. HTC has struggled to maintain profitability for the better part of two years, selling off its stake in Beats, as well as focusing on mid-range and low-end devices for developing markets to help buoy revenues.

HTC gave investors a bit of consolation, though. The company is maintaining its Q2 guidance despite the decline, a sign it believes May sales were an aberration, not indicative of a trend. HTC could be betting on the HTC One (M8) Prime or the mythical Nexus 8 tablet to boost sales.

Whatever the company’s rationale, we hope that its accountants are accurate, for HTC’s sake.

Via: HTC
  • ROR1997

    The fact that I’m eligible for an upgrade, and my phone isn’t working properly AND the m8 is only 99$, tells you how bad the Camera is.

  • an0nim0

    “Apparently, a Hardan Karman edition of the HTC One (M8) wasn’t enough to save HTC from disappointing quarterly financials.”

    Maybe ’cause HTC was trying to KIRF Harman Kardon.

    Or is KIRF just an Endagget thing?

  • JoshHenry

    There is no reason HTC should be in this position. They are the root of what Android is today, starting with the G1. They are always at the front of our trends bringing us the first HD displays, unibody builds (Android Devices), and leading camera technology. There is no question that HTC can build a solid device. I think its the marketing and cohesiveness of a brand that brings it all home.

  • Suman Gandham

    HTC is not long for this world…

  • htc ya later

    oh but it’s metal not cheap crappy plastic, and ultrapixel blah blah. BOOMSOUND and bezel. waiting for HTC to die is more fun than waiting for a new device to come out. everyday i’m like, DL today is the one… getting closer. who could have predicted this outcome…

    • Suman Gandham

      Upvoted purely because your username made me lolz.

  • jimbob

    Marketing rules the business world. Too bad so many tech savvy people cannot seem to understand this. Product is a small portion of the marketing equation. 5 C’s, 4 P’s, STP! Need to know the competitive landscape, who your customers are, and how you can better meet their wants/needs than the competition. And people say an MBA is worthless. :)

  • fritzo2162

    You know, I love HTC, I loved the One, and I currently love the M8, but you can’t just make one superphone and expect to do well.

    • El_Big_CHRIS

      Well it can, but marketing is super key. Apple’s iPhone isn’t the greatest, but it sells because of marketing. Granted they have followers who’ll buy no matter what. But still…

      • fritzo2162

        Marketing is only a part of what Apple does. They built a desirable ecosystem that only uses their devices to access it.

  • tom riddle

    …that’s what happens when you lie to and abandon the customer base.

    • fritzo2162

      Get over the “HTC gave up on my phone two years ago” stuff. They turned around and you’ll notice all of their recent phones have been getting updates like crazy.

      • tom riddle

        Nope, that’s business big guy.

  • crazed_z06

    But it’s metal doe!

  • http://www.twitter.com/macpro88 Jacob

    Maybe if they stopped offering a million different variations of the same device they would probably save a ton of production/RND/marketing costs.

    Also, they need to work on the camera, I know they tried a couple of new things, but it failed miserably. One of the worst cameras IMHO with the current line up of flag ship devices. One of the reasons my HTC One (m7) can’t be my daily driver, is because its camera does not compare to my iPhone 5s, and that’s what the general masses want, a good solid reliable camera on their phones.

  • https://www.heartbleedbug.com/ Intellectua1

    How’s that “premium materials” sales point working for ya. Oh yea that’s right, it’s not.

    • shooter50

      so true. metal wont sell itself. HTC is a miserable failure at marketing. I mean, Robert Downey Jr. in a pitiful attempt at marketing? what were they thinking?
      If the M8 sold for 400.00 no one would buy it because there is no buzz.

      • El_Big_CHRIS

        And that ridiculous ad with Gary Oldman.

  • http://thebeeobee.com/ thebeeobee

    I used to get sooo much hate for telling people the truth about HTC. Sigh.

    Still hope they do the Nexus 8 though.

  • bogy25

    Sad news :(

  • Eikast

    If they had an 8MP camera on the rear with everything else the same, I’m sure that they would’ve gotten more sales. A lot of people hear 4 MP Camera and just back out. The camera isn’t that bad but of course it isn’t no where near the best.

    • shooter50

      anytime something is described as ” not that bad” you know it really sucks.

  • https://www.heartbleedbug.com/ Intellectua1

    Die HTC DIE!!!!!!!!!!!

  • DanSan

    i hate to say it, people will disagree and yes their phones got better as they went but some of them were just…. bad.

    i never owned one but did repairs on it, the incredible was anything but. After owning my thunderturd, it would be my first and last HTC phone ever. The Evo line was a joke, the 3D one was even more of a joke. As much as I hate to see competition go away, HTC is not going to be around much longer IMHO

    • shooter50

      Thundebolt, the reason the masses will never buy an HTC phone again.

  • Ben Murphy

    It’s only a matter of time…

  • Terpak

    Wouldn’t that actually be a 7.2% drop?

    • jimbob

      YOY decline for May = 27%, not decline from April.

      • Terpak

        A drop from $754m to $700m doesn’t come out to 27%. Measured over a month to month, year on year, or whatever time span it still doesn’t add up. All I’m saying…

        • jimbob

          I agree. However, what you are missing is that the article does not say the drop from 754 to 700 is 27%. It simply says 700, down from 754 in April, which also represents a year on year decline from May of 2013 of 27%. You are assuming that is says the 27% drop is related to the other number quoted rather than reading it as it is written.

        • Justtyn Hutcheson

          Two things are being noted in that paragraph:
          1. sales from April to May declined from $754M to $700M
          2. the $700M figure represents a YoY drop of 27.37% for the month of May.

          Hope that helps clear up the confusion.

  • mcdonsco

    Makes Sense

    • Michael Hammond

      ba dum CHING!

    • jimbob

      Had That Coming!

    • geedee82

      They don’t make dollars but they do make sense!

  • s2knj

    That’s what they get for putting a 4MP camera in their flagship device. Put a shooter comparable to the G2 or G3 in a phone that sexy and I bet you they sell more.

    • rals

      I don’t think that was the nail in it’s coffin. You can blame the idiotic marketing.

      • hkklife

        Lousy camera is the main factor but also worth noting are the idiotic marketing, small screen size relative to the massive bezels, killing the “Prime” variant and no true confirmation of a Nexus 8. All this makes for a shaky future.

        • Justtyn Hutcheson

          I wouldn’t say the camera is lousy at all. The only thing that it lacks is resolution for cropping later. Everything else is great, and low-light is amazing for a smartphone.

          Their primary issue is indeed marketing. People haven’t been given a reason to care about who HTC is and why they should get one, while Samsung is busy buying entire airport terminals for their Galaxy phones.

          • BRNSMRF

            I must agree. Although my M8 is the best looking phone in the game, the size of the pics are a disadvantage. It doesn’t bother me cuz I’m a photographer and pic snob so I only use the camera as a mirror occasionally. But If you have this phone you should learn how to use manual mode

        • VV

          Main factor eh? Mind providing your source since you apparently know what consumers want. The camera performs great but haters gonna hate.

      • http://www.ytmnd.com MH

        the LG G2 had basically zero marketing and has outsold everything short of the GS5 and note 3. It’s not marketing…they make beautiful duds. Plain and simple. They need a re-think on the whole (non)sense (the G2 has a rough copy of TW and STILL sells) and perhaps stop focusing so much on “premium” metal (it’s actually cheaper than plastic to make) and start by making something more like the other phones (less bezel, more AOSP-like OS, top notch camera, etc…). Different isnt always better, or even good. Sometimes the best way is to just one up.

      • michael arazan

        $16 Million for RDJ could have given away that much in devices for the HTC one promotions to create buzz.

        HTC should hide one in cities everyday under there twitter account with clues to get a free one, like the people giving out money.

        Then people would be reading all their ads in their twitter account daily promoting the phone

    • VV

      The problem with HTC is the lack of marketing. Meanwhile Samsung is pushing out ads everywhere like crazy.

    • joe23521

      The camera was indeed the deal breaker for me. The big bezels I can overlook, due to the fantastic front speakers, but the 4mp resolution is simply inexcusable in my opinion.

  • Chris Choncek

    Put a fork in it…sorry to say because competition and diversity are good for any business

  • http://twitter.com/geoff5093 Geoff Johnson

    Their phones always have a couple things wrong with them. The M8 would be the device of choice for many if they included a great camera, like you find on the S5 and G3, worked on slimming the bezels and the black bar to make the phone more manageable, etc.

    • Justtyn Hutcheson

      They made sound engineering decisions for each and every feature. The problem is that the masses don’t really care if the 4MP camera is better in lowlight than the 16MP one; 16 is higher than 4, so it’s better. The same goes for the “big” black bar; that space would normally just be bezel (one roughly the size of the chin on the G3), but the speaker assembly sitting below it makes it look much worse than it is because it is unbalanced vertically. The customer doesn’t care if it is necessary to stuff in all of the extra amps and electronics for the speaker, it just looks weird.

      HTC’s problem is that they are trying to differentiate on hardware, but the direction they’ve taken doesn’t really resonate with the population at large. The M8 is a great device, bar none. But its mass market appeal is simply lacking.

      • aQuickBit

        They also had an absolutely awful marketing campaign last year with the “Heres To Change” thing with the trolls and RDJ. I feel like if they could someway pull off an Iron Man type of commercial with RDJ that would certainly win over a lot of consumers, because of “super phone”. Kind of like this classic commercial (just take that bs verizon droid crap out and alter it a bit)
        https://www.youtube.com/watch?v=0YRXo4w8Vho

      • http://www.ytmnd.com MH

        This guy. He gets it. Justtyn Hutcheson for CEO of HTC

        • Justtyn Hutcheson

          Lol, thanks for the vote of confidence. However, I’m not terribly adept at inspiring others to greatness. I can barely manage a disenfranchised “meh” on a good day ;-)

          • http://www.ytmnd.com MH

            These guys need a solid boot up the ass, not to be inspired to greatness. It seems they were already inspired, just in the wrong direction.

      • FormerThunderboltOwner

        I don’t care if the camera is better in lowlight because I take more pictures during the day/indoors than at night. I’d say that’s most likely true for a larger segment of the population which is why they’re “ultrapixel” camera is simply not a good choice for a flagship phone.

        For me personally if it had a better camera and a slightly larger screen (5.5″ or bigger) I’d buy this phone, instead I’m looking at the LG G3 since it’s as close to a “no compromise” device as there is for me right now.

        • Justtyn Hutcheson

          That’s just it though. The UltraPixel specializes in a use case that someone decided is an underserved market, attempting to address the needs of that segment to boost sales. However, they are inadequately showing that even in good light it is a just plain good camera for snapshots, with great image quality. All the consumer sees in the store is the number 4, or the extremely poorly defined “Ultrapixel” (which most of the clerks don’t really understand or care about, either), and then they see the nice big 16. That is something they can grasp, so they go for it whether it is actually good or not.

          Similarly, BoomSound is a great feature…if you care about having a really loud stereo speaker on your phone. They sacrificed an absolutely ludicrous amount of internal space to get that feature into the device, space that could have been used for a larger battery or simply shrunk the phone in general. They thought it was important, but they haven’t convinced the people buying the phone that it is so important that they need to buy that phone.

          Again, they are sound, reasonable decisions, made to entice a buying public that generally exhibits neither quality. Understated is not an advantage when you are the underdog; you have to make more noise than the other guy before people even know you exist. Once you have their attention, you have a very short time to convince them your product is something they want. HTC has accomplished neither, and their efforts to do so have been misguided at best.

          • FormerThunderboltOwner

            You make good points and I don’t doubt that for most people they just compare the numbers and assume the camera is outright terrible along with the phone being much larger and from a company they might not know as well as Samsung, Motorola, or Sony. For others though it’s a compromise that I don’t think makes a whole lot of sense when you can stack the M8 up against other phones with on par or better performance and an above average camera.

            The front facing speakers are amazing though, and more companies need to get on board with that idea.

            Hopefully HTC turns it around.

          • Aaron

            I wonder if HTC wouldn’t be better served by just making a “me too” kind of device instead of “Ultrapixel” this and “Boomsound” that. And don’t get me wrong, I know the Boomsound speakers are a plus, but maybe they should be reserved for a special edition device. The M8 needs to be able to compete on a feature to feature basis and not try to be revolutionary until things are turned around financially. That’s just my opinion.

    • regkilla

      iPhone 5s camera > the rest

      • OreoMan

        I think the G2′s camera could best the 5s’ camera.

  • Cael

    But the M8 was supposed to save the day… *rolls eyes*