Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

HTC Gets Hulk-Smashed by Apple-Samsung Dominance, European Woes, Microsoft's Shunning, and Yet Another Patent Fight


Former smartphone highflyer HTC was just hit with a mountain of bad news.


Think you're having a bad day?

Well, check out what's going on at Taiwanese gadget-maker HTC, which just got hit by one of the biggest streams of simultaneous bad news I've ever seen.

To start, HTC, once a major player in Google (GOOG) Android smartphones, significantly lowered guidance.

For the second quarter, the company now expects to report revenues of NT $91 billion, which is 13% lower than the NT $105 billion forecast issued on April 24. [Editor's Note: The New Taiwan Dollar (or NT) is worth US 3.35 cents.]

HTC cited lower-than-expected sales to Europe, and delayed shipments and product launches in the US.

However, investors should keep in mind that HTC had already been seeing declining sales at the hands of the category-killing Apple (AAPL) iPhone and Samsung Galaxy product lines. (See: Samsung and Apple Are Set to Continue Their Domination of the Global Smartphone Market.)

In the first quarter of 2012, Gartner reported that HTC's unit sales dropped by a whopping 17%, while Apple and Samsung saw 96% and 26% gains, respectively, as you can see in this chart:

HTC's sales are slowing nearly as quickly as Nokia's (NOK) and Research In Motion's (RIMM)!

So should we really be surprised by this latest guidance reduction?

I think not.

However, the bad news for HTC didn't end there.

Our friends at Bloomberg reported yesterday that Microsoft (MSFT) will not allow HTC to produce Windows tablets, according to "people with knowledge of the matter."


Because "HTC doesn't sell enough devices or have ample experience making tablets."

That seems unfair, given Microsoft's zero historical success in the tablet market. Oh well, that might not matter since there isn't really a tablet market. If you look at the numbers, you'll see it's more of an iPad market. (See: Amazon's Kindle Fire Gets Smashed as Apple's iPad Regains Tablet Market Share.)

As if all this wasn't enough, on Wednesday, Apple filed an enforcement action with the International Trade Commission in an attempt to block US sales of key HTC products like the One X smartphones.

So yes, kids, in VH1 parlance, HTC is having the worst week ever.

Here's a video metaphor for the whole mess:

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos