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.
HTC continues its winning streak in the 3rd Quarter. HTC's financial report for the Q3,2014 states the company made a profit of $19 million (NT$0.6 billion). Revenue for the period is $1.38 billion (NT$41.9 billion), which is down from $2.17 billion from the previous quarter.
The company is content with how the HTC One M8 held its ground for the period and continued to sell well despite growing competition. The mid-range Desire line-up is also profitable for HTC, but it didn't specify exact shipment figures for any device.
In the last quarter, the HTC One M8 was the main culprit for the company's $92 million profit turnout. HTC is looking up for a similar to Q3 last quarter of the year with a revenue of $1.38 billion - $1.55 billion.
Anyone who thought that Samsung is losing ground to its competitors needs to check their facts again because they have apparently done very well in Q1 2016, as made evident by a 10.4% growth in profit. The impressive figure of $43.3 billion or ₩49 trillion in terms of first quarter sales is a significant increase over 2015's quarter one sales which was $40.7 billion or ₩47.1 trillion.
The profit made from these sales so far in 2016 is even more impressive as the $5.7 billion (₩6.6 trillion) figure shows an increase of 10.45% from last year. Although it is not mentioned anywhere specifically, one can pretty much guess that the incredibly well received Samsung Galaxy S7 and S7 Edge played a very big role here. It was to be expected once you consider that Samsung has shipped over 10 million Galaxy S7s in the month of March alone!
If these numbers are any indication of what's to come then this is going to be a very big year for the South Korean Electronics giant. We do think that the Galaxy S7 is a fantastic smartphone and the sales figure is probably well deserved.
The Smartphone market is unstable, it has its ups and downs. Samsung announced its earnings guide for Q3 2014. The Korean giant expects a significant drop in profits over the same period last year about 60% to be precise.
The company expects to record profits of 4.1 trillion won (about $3.8 billion) from approximately 47 trillion won in sales. The latter are down 20% from this time last year.
Smartphone sales by Samsung are slightly up for the period. However, increased marketing costs and declining product prices hurt the company's bottom line.
Samsung only managed to secure a meagre 13% of the global smartphone market's total operating profit, while Apple managed to scoop up 83.4% in Q1 2017! In spite of Samsung outselling Apple globally by millions of handsets in the quarter, they only managed to show an operating profit of $1.57 billion, while Apple posted a figure of $10.1 billion for the same. Samsung experienced a 21.9% decline while Apple saw a 79.8% increase in their respective operating profits.
If you are wondering how it's possible, well, the answer is quite simple really; higher profit margins. Apple enjoys insane profit margins in the range of 30.7%; something that can only be pulled off by Apple because of its brand name. No other company, including Samsung can afford to sell their smartphones with a profit margin that high because no one would buy them. Apple on the other hand knows that people will continue to buy them, irrespective of the price. Samsung is having trouble holding onto even a 9.7% average profit margin due to steep competition from Chinese manufacturers in the low-mid end segment.
Saikat Kar (tech-enthusiast)
Having 100% of the market profits is what every company dreams of but even in their happiest dreams, it may seem quite inconceivable that a single company will scoop up more than one hundred percent of the entire operating profit in the business! Nevertheless, that's exactly what Apple has achieved in Q3 2016 as it has managed to net 103.6% of the entire sum of operating profits in the smartphone business globally.
Although it may seem like a mathematical impossibility at first, things become a bit clearer once you consider the actual situation. The number went up above the 100% mark because of the fact that Apple has even managed to net in the money that other manufacturers have lost during the quarter. The likes of HTC and LG has suffered significant losses during the quarter and although Samsung did manage to stay at the number 2 position with a comparatively sad profit of about 0.9%, we now know where most of the money that they lost during the Note 7 debacle went to!
BMO Capital Markets reported the entire scenario, along with also mentioning that Samsung still is the global king of smartphones with a market share of 21.7%, followed by Apple at about half of that (13.2%). Personally, I cannot help but notice that this awe-inspiring percentage also has a lot to do with the tremendous profit margin which Apple has on each of its products.
Saikat Kar (tech-enthusiast)
It may come as a sad news to some users. Latest rumors indicates that, Sony might Exit the smartphone market in a bid to become profitable once again. The Japanese tech giant's CEO Kazuo Hurai announced at a press conference that Sony will no longer pursue sales growth in the highly competitive field.
Right in line with past reports, Mr. Hirai revealed that the company will consider a sale of its struggling smartphone and television businesses. However, there is no deal currently in the works.
Despite developing quality Android smartphones, Sony has struggled in the highly competitive smartphone field. The company has been sandwiched between rivals such as Apple and Samsung in the high end and the army of Chinese companies in the low end of the market.