As we told you a few days ago, the presentation of the results of the different companies does not follow a fixed rhythm. Each brand applies its own calendar when it comes to showing the status of its accounts, and not only that, since they also determine the pace and date on which the new terminals that are presented year after year should come out.
Although we find some brands that increase their market share and obtain, in theory, record profits, the truth is that nothing is static, and even less in areas such as the economy. This results in that in many cases, the trajectory of the different actors in the sector can be assimilated to that of a roller coaster in which there are quieter stages and other more hectic ones. Today we are going to talk to you about HTC, since the Taiwanese firm has been the last to present its accounts. What is happening in Asian lands and what can be the causes and repercussions of the data that we will offer you below?
Data
According to GSMArena, in the first four months of 2017, the company's profits have been about 635 million. At first glance, the figure may seem good but in reality, it is a 6,5% lower than that of the same period in 2016, when earnings stood at 675 million. On the other hand, data only for April have also been revealed, which showed a positive balance of 155 million dollars, 9,2% less than that obtained in the March exercise and 18% less compared to April of last year.
Something circumstantial or prolonged?
In summer we will tell you more about the state of the finances of the Asian company. Between June and August, the turnover reached 530 million dollars, but remained far from the records of the summer period of 2015 when the barrier of the 1.000 million. In the article In which we analyzed the trajectory of HTC, we saw that sales had fallen by about 40% with very specific increases that coincided with the large annual consumer campaigns. As you can see, it would not be a specific phenomenon but the descents would be linked. However, here there is still room to ask questions such as, for example, if this is a preview of a phenomenon that could spread to a multitude of other companies.
The causes
The main condition that the current HTC accounts are these and not others, could be directly related to the number of terminals sold. In the case of the Taiwanese, the commercialization of devices is also a fundamental axis and to this would be added other factors such as a modest welcome of some of its flagships such as U Ultra.
Again, China
The Asian giant is a rival in many ways to Taiwan, and despite the fact that the small island has been a technological powerhouse for decades, the truth is that China is gaining ground not only against this small country, but against other historical leaders such as Japan. or South Korea. Again, the appearance of a beneficial climate for the appearance of dozens of companies that have managed to position themselves in the segments in which HTC has operated with some ease, such as the mid-range, have also had an impact on the bottom line.
What options are left?
Considering the panorama, it might seem complicated that technology could resurface and turn its results around, but, as we have mentioned before, moments of crisis and bonanza alternate in all companies. In recent months, HTC has presented terminals that, despite not having the expected reception in Asian markets, they could have a better track record in other areas such as Europe or America. On the other hand, a rapid adaptation to the needs or requests of the public and the incorporation of trends such as virtual reality that we already mentioned in summer, could help the firm to overcome this turning point.
Increasing competition will be one of the biggest fronts to be closed, but other circumstances could come into play here, such as the speed of change in the sector itself and the paths followed by its rivals that could also be plagued with lights and shadows in parts. equal.
Current bets
The latest accounts would not have been entirely decisive when it comes to speeding up or slowing down the production of new smartphones. An example of this would be the presentation of phablets such as Ocean and One X10 which would reflect a small change in strategy directed towards the creation of larger terminals. These devices would be prepared, at least in theory, to compete against others from brands such as LG. On the other hand, the collaboration with other firms that have also achieved a notable rise in recent years such as Google, could be a refuge for the next quarterly financial years.
What do you think after learning more about HTC accounts? Do you think that his loss of ground has already been final and that from now on, he will have to resign himself to maintaining a lower position in the world rankings compared to other firms or will it be possible to see a resurgence? You have more related information available such as, for example, the results of some of its competitors such as Samsung so that you can give your own opinion.