HTC reported its Q4 results yesterday, and it seems pretty clear that things are going to get worse before they (hopefully) get better. Sales were down 41% compared to the year ago quarter, coming in at US $2 billion. Profitability is essentially gone, given the operating margin of 1%.
HTC’s gross margins were 23% in the quarter. That’s down from 27.1% last year, telling us that pricing pressure is still working against HTC. Given how strong Samsung is in the Android space, it has to be hard to compete. Samsung makes so many of its own parts, from processors to screens to memory. And Samsung is really the only Android manufacturer with so much control over its supply chain. This makes it tough for anyone else to compete on hardware alone, which HTC has to do.
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Source: http://feedproxy.google.com/~r/androidcentral/~3/LxqgqjDPXuA/story01.htm
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