HTC just posted its financial results for the Q3 of the year and the company is reporting a slight decline in sales. Despite the bad news, however, the phonemaker remains profitable as cuts in costs have offset the slowing in sales.
The company's quarterly revenue is $1,38 billion of which profits were $21,1 million. In comparison, the previous quarter was kinder to HTC with a revenue of $2,15 billion and profit of $75,5 million.
HTC saw the largest drop in sales in July by some 33% compared to the same period last year. However, in August the company saw 10% sales jump compared to the same month of 2013. Analysts blame the launch of the iPhone 6 and iPhone 6 Plus for HTC's 7.9% fall in sales in September.
Final results for Samsung's financial standings at the end of the first quarter of 2016 have been revealed and it looks extremely good, especially in a market which is facing a standstill from many aspects. A 12% increase in operating profit along with a 5.7% boost in overall revenue has actually exceeded even Samsung's own optimistic expectations. Samsung's earnings guidance had predicted an operating profit of $5.7 billion/KRW 6.6 trillion and total revenue of $43.3 billion/ KRW 49 trillion for this quarter. The actual figures exceeded those predictions as the total revenue turned out to be $43.46 billion/ KRW 49.78 trillion, while the operating profit at the end of Q1 stands at $5.82 billion/ KRW 6.68 trillion.
In addition to attributing these numbers to the early launch decision and the consequent success of the S7 series, the Korean Electronics giant also mentioned "improved memory product mix, expanded 14nm supply of System LSI products and increased sales of OLED panels." In its mobile business alone, the operating profit has gone up by a whopping 42% in year-on-year comparison, as the number stands at $3.4 billion/ KRW 3.89 trillion. The consolidated revenue of Samsung Mobiles was reported to be $24.12 billion/ KRW 27.60 trillion in Q1 2016, an increase of 6.6% when compared with Q1 2015.
The company also mentioned that they expect smartphone demands to go down as the year progresses, while the market for tablets will continue to diminish even further. When asked about Samsung's plans for the rest of the year, it was mentioned that Samsung "will reinforce its leadership in the premium smartphone segment on the back of the Galaxy S7 and S7 edge, while continuing to increase volume and improve profitability in the mid-to-low-end segment."
Author: Saikat Kar (Tech-journalist and enthusiast)