While Samsung Has a Great Second Quarter, HTC Reports shrinking profits


Two of Android’s top device manufacturers tell two different stories when it comes to corporate finances. Taiwanese smartphone and tablet manufacturer HTC has recorded another profit loss according the company’s unaudited second quarter financial report. One of HTC’s main competitors, Samsung, is showing a record increase in profits in its unaudited financial report. Is natural selection taking hold int he Android ecosystem?

Electronics manufacturer Samsung has announced that the company expects to make a $5.9 billion US Dollars (USD) second quarter profit due in large part to smartphone sales. This will mean a 79% percent increase in profits over the last quarter. Official numbers are expected to be released by the end of July. Samsung’s profit increase signals a big quarter for the Galaxy series device manufacturer.

Samsung has surpassed Apple and Nokia as the largest phone manufacturer worldwide. Analysts expect Samsung to sell 25 million Galaxy S III smartphones by the end of the second quarter and 204 million smartphones in 2012. The Samsung Galaxy S III should become one of the most, if not the most, popular Android smartphones sold in 2012.

While Samsung has good news to report, one of it’s competitors, HTC, reported a smaller profit than last quarter. HTC reported a profit of 7.4 billion New Taiwan Dollars (NT) or $247 million (USD). HTC profit was down from last quarter’s profit of 17.52 billion NT or $585 million USD – a net profit loss of 58%. HTC cited customs delays for new smartphones, which were slowing down shipments to the United States and the weak economy in Europe as a reason for the decline in profits.

The European financial crisis has impacted sales for both smartphone manufacturers.

HTC is hoping that its new One series will be a big hit with consumers. HTC will be looking towards new markets to increase the company’s financial standing. Analysts report that HTC will look to increase it’s profits by competing in Asia – specifically China, the world’s leading market for mobile devices. In order to compete, HTC will have to go head to head with Chinese manufacturers Huawei and ZTE.

Photo courtesy of TechnoBuffalo]]>

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