HTC’s quiet disaster–Share price down 80% from 2011 peak, hits 7 year low
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When we think of a smartphone company in trouble, we tend to think Nokia and RIM. Who knew a quiet storm was brewing at HTC, where the share price just hit a close to 7 year low of 248 TWD.
This number is 80% down from their peak of 1,300 TWD on the 29th April 2011 and interestingly if you invested at the peak, your investment would have been worth more in Nokia stock, which is down only (!) 70%, versus the 80% loss of HTC.
HTC’s second quarter earnings dropped by 27% and the company predicted its revenue would drop by half in the ongoing period and in Q3 will be around $2.3 billion, which is 41% less than in the same period last year.
Q2 2012 results were the third consecutive drop for HTC which also announced a 30% drop in revenues in the first quarter of 2012.
The cause for all the trouble is of course Samsung and Apple sucking up all the profit in the smartphone arena, which does not bode well for HTC’s on-going profitability, which may very well be on the same trajectory as Nokia, Sony, LG and RIM.
Do our readers have any advice for HTC? Let us know below.
Via Mobilebloom.com
