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HTC Q2 profit slumps 83 percent, Samsung’s profits below expectations

htc-one-stand

Taiwanese OEM HTC has revealed that profits during its April-June quarter plunged to 83 percent Year on Year (YoY), even though it is some improvement over its Q1 performance. Unaudited net profits came in at Tw$1. 25 billion ($41.67 million), compared with Tw$7. 4 billion a year ago but up sharply from the Tw$85 million in the first quarter.

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The revenue plummeted 22 percent YoY but increased 65 percent from the previous quarter. This is probably because the Android Smartphone manufacturer tried to turn things around in the second quarter with its new HTC One premium Android Smartphone that got good reviews and consumer preference owing to its looks, build quality and the amplified front facing speakers. CEO Peter Chou also gave credit to HTC One for the same.

In retrospect, Samsung’s preliminary figures for the second quarter reported a profit of 9.5 trillion won (around $8.3 billion) from 57 trillion won ($49.9 billion) revenue. Despite the highest ever profit by Samsung, investors aren’t happy. Since investors look at positive and new sources of income and when it is compared with the profit graph of Apple, one can see why investors are unhappy.

Samsung Mobile

The profits are shorter by 6.4% than the expectations, a margin of $690 million dollars. Even after having sold 20 million Galaxy S4 Smartphone units, making it the fastest ever selling Android phone in the history and capturing major Smartphone market around the world, Samsung’s profits fall relatively shorter than that of Apple time and again. The profit is bound to rise in the next quarter as Samsung released new Galaxy S4 variants that will see wider acceptance rate over global markets.

Research firm IDC confirmed that Samsung holds a 30.3 percent stake in the global Smartphone market while HTC has only 4.6 percent left, which is a sharp and worrying decline from its 8.8 percent share last year. Apple holds about 19.1 percent share while the rest are shared by Sony, LG and other local Asian manufacturers.

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