HTC’s Financials Plummet, Potentially Entering a Death Spiral

HTC, the “other” Android OEM, is having a rough year. After announcing and releasing two flagship devices, the One X and One S, to great applause, their financials have continued to plummet as they face staunch competition from both Samsung and Apple.

The Taiwanese corporation once was the premier name when it came to Android, launching devices such as the DROID Incredible, EVO 4G, and even the original G1. However, ever since Samsung swooped in with the Galaxy S lineup, HTC has faltered at an increasing rate. This last quarter is no different, with sales dropping 48% year-over-year, and profits plummeting by 78% as compared to this quarter a year ago.

Frankly, those are some staggering numbers: HTC’s marketshare also continues to drop, regardless of them producing what is, in many ways, the superior product to Samsung’s offerings. HTC’s inability to gain traction at the high end due to Samsung and Apple is hampering their abilities to compete with the Android fans. Their low-end offering, the One S, is again superior in quality to anything offered by Samsung – but, again, they are unable to gain traction.

It’s an awful dilemma, as HTC is one of the few manufacturers which can truly compete with Apple in terms of design and UX. As someone who is a legitimate fan of their products, I am saddened that they seem to be going the way of the RIM, or of the Nokia – here’s to hoping that HTC can pull itself out of what is becoming a death spiral.

[Unwired View]

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