Stock Talk: HTC's problem is getting worse

Late last week, HTC posted its Q2 results for 2012, and they weren’t pretty. Profits are down 60 percent year over year.  But perhaps the most visible sign of decline comes from revenue. After all, consumers don’t necessarily know if a company makes money based on what it sells. But if HTC sells fewer phones, it’s a highly visible change. And that’s exactly what has been happening. HTC revenues dropped by more than 25 percent in Q2.  This week the Taiwanese manufacturer posted results for July, and sales were down by 45 percent. This is worrisome because it suggests HTC’s revenue woes are accelerating, not easing.  

The problems faced by HTC are serious. With Android having gained so much market share over the last couple of years, the only way to explain HTC’s performance is a loss of consumer appeal. When people think about Android, the brand that comes to mind is clearly Samsung.  The smartphone market, at the high end, has essentially consolidated around Apple's iPhone and Samsung's Galaxy families. Then, waiting to duke it out for a slice of the action will be Microsoft/Nokia and the Windows Phone 8 Lumia phones, along with Research in Motion’s BlackBerry 10 (neither of which have hit the market)...

[Source: To read the full article visit Android Central]