HTC sees revenue falling due to "delays in product launches"
HTC's been on somewhat of a hot streak here lately, but word on the street has it that the aforesaid outfit may not be able to ship all of its forthcoming handsets on time. A new Wall Street Journal report on falling revenue in the HTC camp notes that an undisclosed amount of delays, a larger-than-anticipated drop in contract orders and lower-than-expected sales in China could lead to drooping income in the short term, and some analysts are pointing out that the company's average selling price per phone is sliding due to looming Android competition from the likes of Motorola and Sony Ericsson. Aside from the Touch Pro2 that'll probably never, ever land on Sprint, HTC has about a gazillion other rumored handsets on the horizon, but it's hard to know for sure which "product launches" are expected to be stalled. So, is HTC secretly retooling a smattering of its handsets in order to stay one step ahead of SE and Moto? Or are old fashioned supply chain inefficiencies to blame?


















Whatever the case may be, they better not delay the release of the Tegra based Superstar, and they better bring it to the States asap.
Why? So the Americans can complain about it's unlocked, over $200 price tag?
@uwaga
Yes, because so many Americans buy their handsets unlocked and unsubsidized. It's not our fault we're getting gouged on every handset available compared to the pricing in the UK, but it seems everyone is willing to pay it, along with a 24 month contract extension.
I'd say the real reason is pricing policy ($800 for a phone? I'd rather get 2 netbooks!!!) but have to agree I've been waiting for a Tegra Superstar for over a year now and will not hold back to throw $200 on its unlocked power!
here's a suggestion HTC...stop making phones w/ goddamn under spec'd hardware. you've been using the same crappy ass qualcomm chips for more than a year, that might boost your sales a bit.
They'd sell more if they'd remove the Jay Leno chin from their products. Almost every cellphone company has had falling revenue. What else is new.
"Aside from the Touch Pro2 that'll probably never, ever land on Sprint"
Darren! How could you, Blasphemy!
What part of the supply chain? Highly unlikely the hardware side is to blame. Pin this on slower than expected delivery of Windows Mobile and Android updates critical for HTC's world domination plans.
I'm hoping it's because they've changed chip supplier from Qualcomm to make their new Android sets awesome rather than merely good.
It's not Qualcomm that is the problem, it is that HTC is too damn cheap to use a decent chip. Qualcomm makes Snapdragon, which is their new high-end chip series for the foreseeable future. And the 1.0-1.3Ghz Snapdragon is actually the fastest ARM core on the market.
Like most other cell phone manufacturers and companies they like to showcase and leak their phones and wait to people forget then when it's finally released something better seems to be even closer...
Don't put the manufacturers and cell companies together on that one.
Look at it like this: When the US networks delayed the introduction of the Touch Pro by a few months, the TP2 was still coming out on schedule by HTC. HTC then releases teasers, in my opinion, to punish the cell companies. Once we all saw the product map, the current offerings were no longer the most wanted. I'm a good example of that, as I was a week from picking up a Fuze, and now am staying on Tmob for the TP2.
Some are better than others, but for a company like Verizon to be the last to bring the TP sucks for them even more. I'm not saying it's a great business model for the US companies to plan on HTC phones to be on the list for more than a year, or for HTC to crank them out yearly. I do think the US companies should embrace the number of new phones, as the represent a marketing opportunity. Goodness, Tmobile overseas has seen quite a few more smartphones since both they and the US had the MDA launched at around the same time.
It seems like software releases are getting drawn into the yearly updates now too, with Apple and Google jumping on, and Microsoft gearing up for updating their mobile offerings more often.
Even though i think the HTC Hero's design is awful, that fully black colour scheme isnt bad at all.
they might see some damn revenue from me if they would just put a goddamn 3.5mm jack onto their damn phones! ENOUGH WITH THE ADAPTERS!
The HTC Hero has got a 3.5mm jack. Have a look on the HTC website and scroll down to connectivity.
http://www.htc.com/www/product/hero/specification.html
Looks like they will be getting your revenue after all!
I don't think that's the reason....
@ Daniel
I am afraid it is.
With everyone speculating about HTC's Tegra phone and Samsung's Jet Omnia or even the Omnia HD in the past etc why would people be excited about HTC's months old Touch/Diamond/G1 when they only have to wait a few months for something else to be unveiled then a bit more for it to be released.... The real winner in all of this is Sony ericsson who have shown everyone there 1ghz Xperia X2 and the 12mp Satio or whatever it was called. Also, Samsung and LG who don't have ridiculously priced phones do not loose much on doing the same thing because people are not necessary paying for 'the absolute best' as HTC market there products as....
Of course inb4 some kind of strange argument trying to bring in the Apple iPhone... only idiots buy them who are unpredictable.
I say its a bit early to say SE benefits from this. They have not even officially announced "Rachael" yet.
Also,
If they would release me a hero (unlocked and unbranded) on AT&T frequencies they would see my revenue. I want so badly to stick it to AT&T by using Google Voice on my phone.
Look I mean I understand HTC has their problems, but the real problem will be when there is no Hero on T-Mobile. Theres really no comparison.
Haha, the Engadget Apple Hatemongers are totally baffled at this.
In the words of Triumph the Insult Comic Dog:
"Heh Heh, it's called Reality pal..."
How's this for reality - HTC's Q2 2009 sales are up 25% YoY, with revenue up 20% between Q1 and Q2 2009?
http://wmpoweruser.com/?p=6417
My vote is winmo handsets, the demand is now far less for them with android out. They should make the handsets run android as well as windows mobile and sell them. No one really wants a winmo handset
speak for yourself
BS.
I do, and tons of other people I know do too.
Really, do speak for yourself.
I dunno, but maybe if they release handsets unlocked as is, instead of individualizing models for specific carriers, they would have a more streamlined and efficient production.
Why people are surprised? The simple truth is WinMo is demised and hence devices running WinMo have become irelevant! People can no longer deny the fact!
Why do people think HTC is only about Windows Mobiles. Please read up before posting else your post isn't worth anything.
And with HTC sales up in Q2 I can see why you have come to the conclusion that Windows Mobile is irrelevant.
Revenues are falling because they sell badly implemented and supported devices that look cool but just can't cut it. In stead of then making sure the product becomes great by solid support, firmware upgrades etc, they focus all their energy on churning out the next piece of it's-almost-perfect-but-really-sucks phone.
--owner of HTC Touch Pro--
I agree. I'm hoping things will change with the adoption of Android, but that is only hoping. Whether they do or not is another thing!
Amen! (also an owner of a Touch Pro).
Interface is shiny, but crappy.
They need to get ahead of the competition. Release a phone with the following hardware:: a faster processor, more memory, a 3.5" headphone jack, a 3.5" screen & a good camera with a flash. Then work on the software & include:: zoom that works throughout the whole OS, (not just the browser), include additional fonts (larger fonts) for the above 30 yr. old crowd, include the ability to run apps from the memory card, include flash & a better battery. I will never understand why all these Android phones have the same freaking specs, reminds me of the netbook market.
Finally, if one of the "HTC" engineers / designers wants to be a hero they just need to read a couple of the threads here, then implement the recommendations that have been posted time & time again.
So simple & II guarantee they'd have a phone that sells & puts up the numbers they need.
lol... I haven't seen a 3.5" headphone jack yet. High Def?
;)
Lance.. you need to read up before posting. They are up there in all those departments unlike many that are only up there in one or a couple.
"Finally, if one of the "HTC" engineers / designers wants to be a hero they just need to read a couple of the threads here, then implement the recommendations that have been posted time & time again."
Do you actually think that the reason they don't implement those ideas is because they haven't thought of them? HTC engineers are among the best in the world; if they haven't done things that are so obvious that people on engadget keep posting, there's a reason for it. It's the same as the people you get in every PSP article that say "Too bad it still hasn't got a second analog! They should add that in!"
I have no idea about revenue but i just returned my HTC Hero, lacked in speed / cam quality / ability to bluetooth my just taken photos.
-- ex owner of HTC Hero --
Slow news day I guess, cause the original report is dated July 31 (4days ago) and the source is Reuters http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSTP12793120090731
I’m wondering if the report is about a slowdown in growth rather than an actual downturn in revenue. Now that HTC is truly perceived as a major brand in its own right its contract buyers – Sony (Xperia) etc may think twice before buying from what is now clearly the competition.
That said:
They don’t have an own brand flagship product that outstrips the competition
They are using slightly outdated processors
AND A TOUCH PRO2 WITHOUT A 3.5mm JACK IS NOT GETTING MY MONEY
The competition is really good; Omnia, iPhone 3GS (and despite the anti Apple fanboys you’ve got to admit it’s a good phone), and there’s nothing in their line up that really generates absolute “gotta have”.
I’m still looking at my universal – running WM5! – and thinking, “Yup, does the job.”
HTC's revenue is falling because their phones suck. The last 3 of my devices have been HTC phones, and it seems to me that they know how to make a phone, they just don't want to make a complete one. They want to make one awesome phone, but spread it out over 3 different devices
I think the problem is word leaks out about these 'new awesome phones' that will be released 'soon', so we hang on to our current phones that SUCK ASS because we don't want to get 'last gen' even though it's still 'current gen'.
I have a Touch on Sprint, and I fracking hate this thing. It locks up about 70% of the time I get a call. The clock freezes randomly - just the display on the home page, though. The actual clock is ticking right along. Considering the only apps I have installed on it are Skyfire (which performs badly on the phone), Google Maps, and....that's it, I doubt it's any 3rd party software causing the problems.
The speed is TERRIBLE. The battery life is NONEXISTENT. The mini USB is so flaky I'm afraid to even try and put a cooked ROM on it (that I'm sure would improve some aspects of the phone) for fear of bricking it.
But I paid about $400 for it, and a decent new phone would be another $300 (or more) so I can't justify getting something new unless it will last me a couple years at least. That leaves me waiting, and waiting, and waiting....I would love to throw another couple hundred dollars at HTC (assuming the Touch Pro 2 isn't fail), if Sprint would just release the fracking thing already!
I hate Apple...I HATE them. I hate AT&T even more. But I'm about 2 inches away from visiting an AT&T store to get an iPhone, because I want something that works.
You sound to be in the same boat as many. I recommend trying out the Android when a good one like the Hero EVENTUALLY comes available to you in the states. But that's their problem.. they are slow at hitting the global market. Palm is having the same problem.. they can't get saturation without hitting the European and Asian markets quickly. People this side of the pond and no doubt getting bored waiting and are buying other stuff instead.
and=are
Just curious, what is the best phone HTC has put out?
for those who couldn't care less about a keyboard it would have to the the Touch HD
I guess the touch pro 2 for hardware keyboard lovers.
And if you like a more compact phone then the touch diamond 2.
All that being said HTC need to ditch qualcomm or at least their current choice of processor.
Does this apply to the HTC Hero on Sprint, or only the already delayed Touch Pro 2?
@ Kyle
as the article says we might never see the touch pro2 for sprint and as for the HTC Hero it is with possibility that will be release for sprint.
@ OCT25E
Thankfully, I don't care about the Touch Pro 2. I only asked because I am returning my Pre before the end of the 30 day return period and waiting for the Hero to be released on Sprint.
God I want this phone on Verizon.
Me too :(
If HTC sold their phones UNLOCKED and I could go down to the mall right now to buy an HTC Hero, I would.
Enough with the carrier specific subsidized cell phones. There are people that have money and know what they want, so how come we can't buy them easily?
I'm in Canada btw, the worst place in the world to get a nice phone at a decent price.