HTC hit hard, November revenues drop 20% year over year
The latest numbers from HTC show that revenue from the month of November dropped nearly 20% with new handset sales down 30% from the same month last year. It’s shocking to see HTC’s revenue numbers fall, but it wasn’t completely unexpected since HTC did issue earnings revisions for the quarter which predicted that Q4 would see dramatic drops in revenue and net profit.
It’s hard to pinpoint the root cause for the drop in revenue, but we have a suspicion that HTC may be losing focus by catering too much to the wants of U.S. carriers. The latest phones to launch have all been for the U.S. market (HTC Rezound, HTC EVO Design 4G, HTC Amaze 4G and the HTC Rhyme) without giving Europe a new flagship phone since the release of the HTC Sensation.
Yes, the HTC Sensation XL can technically be considered a flagship device, but it’s not really an improvement over what HTC already had available. In Q4 of last year, HTC introduced the HTC Desire HD and HTC Desire Z which put most other Android phones to shame. HTC is also facing much stiffer competition this year from players like Samsung, LG, SONY Ericsson and Motorola.
We’re not sure how long this slump will last, but we’re hoping HTC will be able to turn things around in December, but we may have to wait until early next year before we see any good news for HTC’s books.