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Sony & HTC Announce Huge Losses While Samsung Continues To Dominate

Eric McBride
10

There’s a war going on in the Android world, and it’s neither Apple nor Microsoft that are involved in this one. This is a different type of war, and it’s the kind that many people consider to be the worst kind: Civil war. HTC, Sony, Motorola, LG, and lots of other OEMs are all competing with each other for Android customers, but as you can see from Sony and HTC’s recent financial earnings, they (like almost every other OEM) are both badly losing that war....to Samsung.

HTC recently released their Q2 numbers, and they aren’t looking so hot. Although their Q1 numbers were up, HTC saw declines for Q2 in damn near every sector of earnings in comparison to last year. Revenue dropped an astounding 27% when compared to Q2 of 2011, gross profit dropped more than 30%, operating profit tumbled almost 60%, and earnings per share accordingly dropped nearly 57%. To put it simply, HTC lost money in almost every way it could possibly lose money.

Sony also didn’t fare much better: Operating income for Q1 of 2012 was down 77%, which Sony blames largely on restructuring costs. PS3 and PSP sales were down 14.5%, Home & Entertainment dropped 26.2%, and TV/LCD production also sank.

HTC and Sony projections for the future also dropped, as HTC is expecting Q3 revenues to drop further, while Sony has cut its fiscal year estimates by almost 30%.

Meanwhile, Samsung is recording staggering growth, is enjoying record Galaxy S3 sales, nearly doubled year over year profits on TV and phones, and posted a 98% operating profit compared to Q1 of last year. It seems that while all other OEMs suffer, that Samsung continues to report record numbers.

What do you guys think? Why is Samsung so successful while other OEMs "fail"? Is it due to the product? Marketing perhaps? A combination of both?

Let us know what you think in the comments below!

Picture credits: www.scenicreflections.com edited by myself

Additional sources from Slashgear and Engadget

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Comments

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  • chinu Aug 4, 2012 Link

    i would rather say everybody has its own time to rule the world.... before android htc and sony were the dominants because of their os and walkman series resp.... its now the sammy time who was on java previously.....

    so the history time is changing and everyone gets chance to rule the world..


    rest of the thing regarding custonet's need, both sony and htc need to study more regarding needs.... if htc go with better designs and beyter UI may be there is a chance to rise them again.... and for sony they should come up with combination of the walkman (w series), camera (k series) and android..... both regain their position...... as what i think...... :-)

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  • Atlas Aug 5, 2012 Link

    I think it's mostly marketing and wanna-be-part-of-hype, the same way iphone is booking success. In my country there's an advertisement on tv for the new galaxy every day and multiple times a day, while I've never seen one for Sony or htc devices. I bet this is in more countries like this.

    I was a happy Sony Ericsson user, but nowadays I'm leaning more towards htc devices. Sony offers great support for their phones, it frequently releases android updates with updated versions of their own software and is committed to creating their phones in an environment friendly way.

    Both are important factors to me, but they still lack on the hardware side. While I've been waiting a very long time for a decent upgrade for my slow xperia neo phone, there hasn't been one that could replace it. The first annoyance is Sony its fanaticism with dual cores. This isn't really a major downside as dual cores are fast enough for me, but for the price side it is. Why should I buy a dual core when I can buy a quad core with maybe some more RAM for nearly the same price? But there's another annoyance and for me too important to not buy it, namely the lack of microSDHC card support in their new phones. Their S phone doesn't have a slot and nor do the cheaper models. And I'm not going to wait for the arco hd or something like that to come out.

    I don't know what's wrong with htc, they release beautiful and original designs, with a popular Sense launcher. And the hardware components are always up to date. I just hate the Beats marketing trick.

    While iphone mostly is a status symbol, android phones are mostly playing things. I think Samsung top phones lean somewhere in between.

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  • Eric McBride Aug 6, 2012 Link

    Good points guys. It could be a shift, as HTC did have its time. But I think Sammy is just nailing it with marketing and hype around their products lately. Updates are a big deal as well.

    Really a shame that HTC is still heading in a downward direction after the One series (and yeah, I hate Beats as well :-D).

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  • Ilgaz Aug 6, 2012 Link

    They got rid of beats thing, read on the register UK.
    Htc issues can be easily understood by looking to Evo 3d, you have a device that can display 3d without glasses and you don't demo it in shops, allow it to be served turned off next to other stuff like Samsung.
    Similar thing happens right now, that photo taking monster is never experienced by customer so nobody knows about it.

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  • Eric McBride Aug 6, 2012 Link

    They sold off 50% of their Beats shares, but they are still working with the company. Im just not sure how less involved they will be with Beats because of this. I'm pretty sure the Beats headphones wont ship with phones now.

    As far as the 3D goes, its very cool, but not ready for mass consumer reception. A shame though, as it really is cool technology.

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  • CJ Brown Aug 9, 2012 Link

    Marketing & lack of products that could be sold under contract OR no contract (Samsung is hyping everything they have & doing it everywhere) ...

    It wouldn't hurt for HTC & Sony to step up & market their products better (vs leaving it up to cellular service providers to do the job). It also wouldn't hurt to leave BEATS behind & concentrate on better screen size / high def & better processors ....

    I'm loyal to HTC, but that's only if they don't go belly up leaving loyal consumers with zero customer support ...

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  • Eric McBride Aug 9, 2012 Link

    Agreed CJ. Marketing is a big part of it, and most Sony phones look like MP3 players :-D

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  • CJ Brown Aug 9, 2012 Link

    lol - I agree Eric - Sony's Smart Phones do look like a modern (digital) Sony Walkman .... Sony has remained an innovator via Flatscreens, DVD / Blu-ray players & the media we record on (Flashdrives, DVD-rom disks) .... but if Sony wants to emerge like Samsung? They need to re-evaluate their product line & be prepared to market it better (a redesign wouldn't hurt) ...

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  • Eric McBride Aug 9, 2012 Link

    Totally agree. Still love Sony as a company, but they have a hell of a lot of work to do if they want to make gains in their smartphone sector.

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  • CJ Brown Aug 9, 2012 Link

    Sony = some of the best Digital Cameras & Camcorders available (I <3 their Cyber-shot Digital Cameras / Handycam Camcorders), if Sony borrowedfrom their Bloggie HD Cameras, it 's good step towards re-designing their Smart Phones ....

    http://store.sony.com/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10551&storeId=10151&langId=-1&identifier=S_Bloggie


    The new VAIO T Series Ultrabook is a great electronic device (& a perfect template towards designing an Android Tablet - something both Samsung & Toshiba are cornering the market on) ....

    http://store.sony.com/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10551&storeId=10151&langId=-1&categoryId=8198552921644852023&SR=hero:computers:vaio_t:ss:Targeted

    Internet Player with Google TV (needs some work, but its a step in the right direction) - watch exactly what you want, search everything at once - single episodes, entire seasons, games, websites without switching inputs or remotes

    http://store.sony.com/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10551&storeId=10151&langId=-1&productId=8198552921666462151

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