HTC: Falling Sales and Silent in Future

Numbers, of balance sheets and see how days gone the quarter. Companies spend now to collect your notes and we, the consumers, we have put them the note as we have invested in them or not. The mobile market is no exception, and in fact recently we talked about the results of Line. Today talk about a company that does not recover is the worst time of its history: HTC He has published its economic balance in the last quarter and also manifested on future communications.

As we know from Engadget, the Taiwanese company said at its communication to investors who There will be no further announcements regarding their future plans of action. A measure that moves away from the (little) transparency that tend to have the companies when it comes to communicate the State of its economy, as well as details regarding sales of different products. And in this case it denotes some prevention given the worrying situation that we have been observing for months.

Those wonderful years

In Taiwan there were better times and much. Although many will remember most recent terminals, the manufacturer was responsible nor more nor less than bring the first commercial smartphone with Android market, the HTC Dream G1 presented on October 22, 2008. This year in particular the company had good sales figures, beating its own record that same November with 528,27 million dollars, one 10% higher to the previous month although one 22.1% less than the same month in 2007.

Tniendo into account in November 2008 profits were almost 30% higher than the same period in the previous year. More records broke later, when in the third quarter of 2011 the 13.2 million sales, an increase of more than one million compared with the previous quarter. Results in those who had a lot to do its presence in China, that increased considerably during this period.

When you go on your own is expensive

The aftermath was positioning as one of the leading manufacturers with releases such as the HTC Magic or HTC Sensation, until accounts began to show symptoms that something is not going well closing the year in 2012 with sales similar to those they had 8 years ago, $ 34 million.

The reason for year end badly after having started on the right foot was, according to stated that at the time was CEO of the company, Peter Chou, a bad approach to marketing and have not cared enough to him calling for the mass of consumers. In fact, the company remained firm in its strategy rather closed and continuist designs that you were rather obsolete with respect to the competition, which also had to do in that year’s poor sales.

The lifeboat of aluminium… And the new shipwreck

After a February 2013 that was its worst month in three years, the HTC One was a breath of fresh air for the Taiwanese company that in June achieved its best month in terms of sales (with 967 million dollars) from a year ago. As we clarify in due course, a recovery that also occurred in parallel to the launch of the flagship of his main rival, Samsung, with its Samsung Galaxy S4.

Cher Wang who acknowledged that they had forgotten the mid-range

The HTC One (or M7) and its association with Beats reported improvements, but the poor results came back in the first quarter of 2014. This made that company raised to change strategy and broaden the focus, returning a range average which had been neglected in favour of achieving satisfy users looking for a high-end terminal. So Cher Wang said it than, a year before she take the helm of the company, acknowledged in an interview to Reuters that they had forgotten of this sector of products.

Salvation was not arrive in 2014, with a peak of sales in the third quarter of this year of its flagship, the HTC One M8, which had not just recover the positive trend from previous years. Or the reinforcement of the catalogue of the mid-range and not a flagship continuity in design (perhaps wanting to take advantage of the pull of its predecessor) and questionable innovations (such as the double rear camera) were not sufficient.

2015: beating the records do not agree

Balance sheets that we have been seeing of the company this year are a continuous test of the tough situation facing the company and, at the same time, the consolidation of which the right strategy and product decisions have not been taken in an increasingly demanding market. The year in which have an HTC One M9 which has not met expectations again by continuum, not bring a claim clear concerning the competition and repeated errors, even though you have patched some aspects such as the Ultrapixel.

The balance that we have been seeing of the company this year are the consolidation that the decisions have not been taken

And that year started very well, with one 24% more revenue than in the same period in 2014. But not followed, leaving an easy way to Cher Wang in his new role as CEO of HTC. Despite their efforts, in June this year they suffered the biggest drop in its history bag, and thereafter not fared better with months of losses, dismissals and hopeless investors.

Best we remain silent

The new owner today, far from being encouraging further denotes the bad situation of the Taiwanese company. Since HTC have reported 138.6 million dollars in losses for the last quarter, that it is less serious that the previous quarterly balance (with losses of us $ 265 million) continues to be a negative.

In addition, facing the market, if the present figures negative already is a problem, the fact of announcing that there will be no more releases with respect to the road map or future plans is a sign of weakness and lack of confidence; the translation of this enterprise and economic is that from HTC do not want to give clues of the amount going to allocate their investments. Another way that investors, who already have lost interest, move away a little more. We’ll see if Wang and his company some as remaining on sleeve.