ZTE, the world’s ninth-largest smartphone manufacturer, is looking to move into the high-end market in 2015 to help improve financial performance and improve their presence in markets like the U.S. ZTE, like other Chinese manufacturers, have tended to operate in the lower end of the market relying on sales quantity in markets like China to offset the razor-thin margins they achieve with their devices. Zeng Xuezong, ZTE’s executive vice-president, says “we will make more and more premium smartphones” joining Huawei and Lenovo as companies hoping to break out in coming years. » Read the rest
T-Mobile released their first quarter results for 2014 and the news is very good for the Uncarrier. Since unveiling their Uncarrier strategy a year ago, T-Mobile has been pushing for changes in the way carriers do business. This has not only created ripples of change in the industry, it has also been good business for T-Mobile which saw record growth during the quarter. Perhaps the highlight of the numbers is the addition of 2.4 million customers, the first time T-Mobile has topped the 2 million mark. This was also the fourth consecutive quarter with more than 1 million net additions which T-Mobile says makes them the fastest growing wireless company. According to CEO John Legere, “…our results reflect the growing customer revolution that we’ve ignited.” » Read the rest
LG released their third-quarter financial results and the news is good for the Korean manufacturer. In particular, LG Mobile Communications Company reported their third-quarter revenue increased by 24 percent compared to the same period last year. This was generated off of shipments of 12 million smartphones, although LG did indicate profitability and average selling price were impacted by competition and their marketing investments. LG probably helped their cause with the new LG G2, which may not be the top phone on the market right now, but it certainly provides a viable option for buyers who may be growing increasingly wary of either Samsung or HTC products. LG anticipates they think they will be able to continue to capitalize on sales of the premium LG G2 device and supplement that with mid-tier products like the L II and F series devices during the holiday season.
The company as a whole posted revenues of KRW 13.89 trillion ($12.51 billion USD) and operating profit of KRW 217.80 billion ($196.34 million USD) during the third quarter. This was an increase in operating profit of 27 percent compared to the same period last year. As we have watched HTC continue to fade away over the past couple years, we might be witnessing LG’s rise to a position as Samsung’s main rival in the Android device market.
As HTC continues to battle a two-year financial slide, one analyst has suggested a merger with Huawei could be a way out for HTC. HTC and their fans had high hopes the HTC One would prove to be a product with enough popularity to at least turn the ship around financially. During the first half of 2013, HTC also started to concentrate on some unique marketing strategies, usually aimed squarely at market leader Samsung. To their credit, the HTC One is generally regarded as a premiere smartphone and has garnered extensive praise throughout the industry. Sales of the device did have a positive financial impact on HTC during the second quarter of 2013 when it was finally released, but not to the extent hoped for. Despite plans to model a sales strategy similar to many other major manufacturers, HTC sales are predicted to stay flat for the third quarter, leading some to question what other steps the company could take to prevent a complete collapse. » Read the rest
After watching HTC struggle financially during the past couple years, we have news from them today showing a nice rebound during the month of May. Unaudited revenues rose to NT$29.0B ($969M USD), following up the month of April 2013 when unaudited revenues were NT$19.6B ($655M USD). That is a 48% increase month to month. To add some context, during the first quarter of 2013 revenues for HTC were only NT$42.8B ($1.43B USD), which means HTC has already generated more revenue in just two months of the second quarter than they did during the whole first quarter of the year. » Read the rest
T-Mobile US released highlights of their 2013 first quarter financial results showing positive growth in their customer base. For the first time since 2009, the carrier experienced positive customer net additions. This was a result of continued strength in prepaid net additions, the seventh consecutive quarter of growth, combined with a significant improvement in postpaid losses. Those losses were down to 199,000, a 61% improvement compared to the prior year when that number was in the 500,000+ range. Overall, T-Mobile added 579,000 customers and now claims 34 million customers. The growth in customers was attributed mainly to the introduction of their new “Simple Choice” Un-carrier plans and the addition of the iPhone to their portfolio. » Read the rest
Last month HTC released their financial results for the first quarter of 2013 and the numbers were unpleasant reading. In a recent conference call, HTC sought to put some context to the numbers for the benefit of investors and analysts. CEO Peter Chou acknowledged the problems supply chain delays had caused for HTC and the release of the HTC One. Nevertheless, he believes HTC ultimately had a successful launch of the HTC One and looks forward to sales of about 10 million units during 2013. Most of that will take place during the final three quarters of the year as analysts from CLSA Asia-Pacific Markets project only 750,000 units were sold during the first quarter. For comparison, Samsung is projected to to sell 60 million Galaxy S 4 units. » Read the rest
Over the past 18 months or so, we have watched HTC’s financial deep dive as it keeps setting record-low quarterly profit numbers. HTC was banking on the HTC One leading a rebound for the company. That could still happen, but after delays, the HTC One was not able to ship in any meaningful numbers during the first quarter of 2013, leading to more disappointing financial results for HTC. According to HTC’s just released report, net income for the first quarter was NT$85 million ($2.84 million USD), a mere pittance compared to the NT$10.9 billion ($363 million USD) for the same period a year earlier. » Read the rest
Sprint reported fourth quarter and annual financial results today driven by record wireless service revenues. Fourth quarter net operating revenue totaled $9 billion, including $7 billion from Sprint platform wireless service. On an annual basis, the numbers were $35.3 billion and $27.1 billion respectively. This represented growth of 12 percent year-over-year for the fourth quarter and 15 percent growth for the full year. » Read the rest
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?