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There’s a sad symmetry to the contrasting fortunes of Samsung and HTC — as the former rises, it seems, the other can only fall. Samsung has announced record profits for the third quarter of the year, while HTC confirmed it had lost money for the first time since going public over a decade ago.
Samsung’s estimated profit for the quarter hit 10.1 trillion won (£5.85bn), from roughly 60 trillion won of sales, Bloomberg reports. The Korean company’s shares edged 1.6 per cent higher on the news, which beat forecasts.
Analysts reckon Samsung’s record sales and huge profits are down not to its expensive high-end devices, such as the Galaxy S4 and Galaxy Note 3, but to selling many more mid-range smart phones, such as the S4 Mini and last year’s S3. Countries such as India and China are experiencing booming demand for reasonably priced smart phones.
Samsung also makes the chips that power competitors’ phones — including the new iPhone 5S — and apparently benefited from higher prices after a fire in one of its Chinese competitors’ factories.
HTC, meanwhile, posted a net loss of NT$2.97bn (£62m), on NT$47bn of sales. Its share of the smart phone market has plummeted, halving in only three months.
That’s despite its HTC One and One Mini phones being widely lauded for their power and beauty.
HTC was an early pioneer of Android phones, building brilliant blowers such as the Hero and the Desire. But Samsung blew it out of the water with the massively successful Galaxy S2, and with its continued marketing budget (including enormous incentives to phone salesmen) it’s accelerated away. HTC’s limited number of devices also puts it at a disadvantage.
What do you think HTC should do to turn its fortunes around? If it can’t make money on a gorgeous mobile like the HTC One, is there any hope for it? Let me know what you think in the comments, or on our not-for-profit Facebook page.
