HTC profits fall 57% in wake of Apple injunction

By , Jul 6, 2012

It may seem like nothing ever comes from all of these ongoing patent lawsuits, but that’s not always the case. Just ask HTC, who saw shipments of its flagship handset held up at U.S. Customs back in May due to an injunction order.

The delay only lasted a few weeks, but it left HTC unable to get its One X and other handsets into the hands of customers on launch weekend. And the company cites it as one of the main reasons why its profits plunged last quarter…

Reuters reports:

“Taiwan smartphone maker HTC Corp (2498.TW) saw profit more than halve in the second quarter after European sales disappointed and phones destined for the U.S. market were held up by customs inspections.”

This is devastating news for HTC, who was already in a downward spiral prior to the Customs issue. After years of leading the smartphone industry, the company has watched the likes of Samsung and Apple quickly overtake the market. In fact, in Q1 of this year, HTC took a backseat to both Nokia and RIM in smartphone sales. Yikes.

And it doesn’t look like its luck is going to be turning around anytime soon either. Even with its new One X receiving thumbs ups from tech reviewers, the company is still having major problems moving handsets.

If it doesn’t do something fast, HTC is quickly going to find itself in the same boat as other struggling smartphone manufacturers. Not only does it have to come up with a hit product, but it also has to figure out how to stay away from Apple’s legal team.

What do you think? Can HTC turn this thing around?

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  • MagicDrumSticks

    This is the way the tech industry works. It’s a dog eat dog world. Just think, 10 years ago Microsoft was the top dog in the tech industry. While they are no slouch now, Apple has quicky grown to become a bigger company than Microsoft.

    Regardless of how loyal we are to our brands, the average consumer wont even think twice about switching to another brand for their latest purchase if something more flashy and fancy is released.

    There is no brand loyalty among the masses.

    • http://www.facebook.com/profile.php?id=604885391 Richard Borkovec

      I, for one, think not having brand loyalty is what pushes for innovation so fast. If consumers aren’t going to stick with a brand, then the companies need to stay competitive.

      It sucks that HTC lost so much revenue cause of an injunction, though.

  • Jose Cheong

    umm firstly Apple didn’t beat Microsoft in terms of OS (look at the market share OS of the desktop/notebook first). Their comeback is handheld devices. Don’t get me wrong I’m a big or was a big Apple product fanboy (3g, 3gs, 4, 4s, ipad 1 & 2, ipod touch 2g). But winning other companies by lawsuit? That is just under the belt. I admired how Steve pulled Apple back into the game by coming up with iphone and stuff; that’s winning by innovation and vision. Suing other companies; especial small companies just to just deny their sales for a period to make of time to make them take a profit hit is laughable. Doing something that hurts others while benefiting themselves is not glormous but acceptable; Doing something that hurts others while non-beneficial to yourself is plain evil. They are basically dishing out vast amount of money in order to make other companies go out of business. They should feel ashamed of themselves.

    • adistarr

      There must be a reason why judges are granting the injunctions. If these companies are going to competing fairly there would be no need for apple to go after them. They’re dishing out vast amounts of money to protect their innovation .. Patents aren’t just for fun you know.