Taiwanese handset maker HTC continues to suffer as its competitors Apple (NASDAQ:AAPL) and Samsung Electronics gain ground in the smartphone market. HTC reported a 79 percent decline in third quarter profits and a 48 percent drop in revenue.
In the third quarter HTC reported its net income declined to $133 million, which missed the $151 million that analysts projected. The company also reported third quarter revenue of $2.3 billion, missing analysts' estimates of $2.56 billion. On Aug. 3, HTC forecast its third quarter revenue would be $2.39 billion to $2.73 billion. The company also saw its operating income decline 76 percent to $167 million.
HTC CEO Peter Chou admitted in a company email to employees in August that the company lacked a "sense of urgency" necessary to combat increasing competition from Samsung and Apple. According to ABI Research, in the second quarter HTC devices accounted for just 2 percent of world's handset shipments.
The research firm noted that North America used to account for 50 percent of HTC shipments, but now makes up just 25 percent of the firm's shipments. ABI also said HTC has all but conceded the North American market to Samsung and Apple and will refocus on developing its presence in China, which continues to show very strong growth in smartphone sales.
HTC, which has to date relied heavily on the Android operating system, is hoping to find success with Windows Phone in North America. HTC earlier this month teamed with Microsoft (NASDAQ:MSFT) for a joint marketing push to sell its newest Windows Phones, the high-end Windows Phone 8X and the mid-range Windows Phone 8S.
HTC stabs at Nokia with first 'signature' Windows Phones, 8X and 8S
HTC's new Windows Phone 8 smartphones
HTC's Chou: We must 'kill bureaucracy,' work to regain smartphone edge
HTC reports weaker July sales as shares tumble
HTC returns half of Beats Electronics stake for $150M
HTC'S Q2 profit sinks amid weaker sales
HTC to avoid low-end smartphone market