For Android fans, today has been a day to enjoy mostly good news in terms of the continued growth of the Android ecosystem. We see that Android tablets grabbed 41% market share for the third quarter, an unexpected jump in light of Apple’s dominance in the market segment. Meanwhile, Samsung reported phenomenal third quarter profits, setting records for smartphone shipments and establishing themselves as the worldwide leader in smartphones. However, not all of the news is coming up roses. Case in point, new guidance from HTC which should serve as a warning about how quickly things can change.
HTC issued their warning Friday, indicating they expect further declines in operating profit margins and revenues during the fourth quarter. We previously reported on HTC’s third quarter financial results which continued a string of disappointing quarters. These results are a contrast to HTC’s spot as one of the top five smartphone manufacturers in the world and their former position as Apple’s chief rival in the U.S. market only two years ago. According to HTC, they expect operating profit margin to drop to only 1%, the lowest it has been in a decade. Meanwhile, they anticipate fourth-quarter revenue to fall 41% compared to the same period a year earlier. These latest projections are worse than analysts previously expected.
Do you think HTC can turn things around?