HTC is improving, but U.S. smartphone market remains a challenge

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HTC has been struggling in the United States to compete with the likes of other smartphone manufacturers like Samsung and Apple. The latest report straight from the vendor’s CEO, Peter Chou, indicates that conditions have started to improve elsewhere, but the U.S. market continues to be problematic.

It wasn’t too long ago that HTC was on the top its game here in the United States. In 2010, HTC was one of the leaders in the market with the first 4G phone, the HTC Evo 4G. It also manufactured the first Google Nexus device, the Nexus One.

Fast forward two years and HTC just hasn’t been able to make any devices that match the standards competitors have set.

“A major challenge we faced last year was the big drop in sales in the U.S. because of competition from the iPhone 4S,” said CEO Peter Chou. In calendar Q1 2012, profits dropped a staggering 70 percent to T$4.464 billion or $151 million. For the second quarter, however, HTC is planning to jump back up 55 percent to around T$105 billion or $3.56 billion. It doesn’t foresee ever having 50 percent of its revenue coming from the United States any time soon, though. Those were the good ol’ days.

Barclays Capital analyst Dale Gai isn’t so optimistic for HTC. “The guidance on revenue looks acceptable; it’s a figure that has taken all the risks into account,” he said. “This is a difficult war; the market will be focusing more and more on HTC’s profit and value. HTC has said it will return to normal levels, but I don’t think it will be able to go back.”

[via Reuters]

  • Anonymous

    The future of the US market is low cost, high tech products. HTC will have to come up with a phone that can compete with the I phone technologically at a much lower price. This will then be sold by the prepaid networks like Tracfone, and will take the market. People are paying large amounts for Apple products for their novelty, but that will be gone in a few years.

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