January 7, 2013 | by Natesh Sood
At this point, it is painfully clear that HTC is in trouble. Profits in Q4 of 2012 were the lowest for the company since 2004. High-end smartphones produce great profit margins, but only if they are being sold at a rapid pace. HTC has several high-end devices in the market, but the revenues and profits just aren’t amounting to what they used to.
For instance, in Q4 of 2012, HTC earned around $2.69 billion in revenues, which translated to just $34.5 million in profits. Last year’s Q4 profit amounted to $356.5 million, so it is obvious the drop off in profit HTC experienced.
CEO Peter Chou does have high hopes for 2013 in which the company needs to refocus its marketing strategy and produce higher quality phones. The HTC faithful will continue to purchase their Android and WP8 smartphones, but the average consumer needs some convincing in order to purchase HTC over Samsung and Apple.