HTC profits down 45% from a year ago. What does recovery look like?

Man. HTC just can’t catch a break here.

Last week, shares fell almost 5% on the news that HTC only pulled in $443 million this August, which is down 45% from a year ago. It seems that the critically acclaimed One and One Mini handsets aren’t quite motivating consumers to part with their cash. Investor confidence is also a little shaken by news of high level executives leaving the company. Some of those execs under investigation for allegedly leaking company secrets. In all, not a great position for the phone maker to be in given how competitive the phone landscape is.

The one resource HTC most likely needs to turn around its market image is likely the one most difficult to come by: Time. HTC’s recent moves have largely been celebrated by tech pundits. The HTC One marks the first handset by the company which isn’t hamstrung by carrier branding. Even the older One X was billed as the “Evo 4G LTE” on Sprint, diluting HTC’s presence. Future HTC phones will likely not be plagued by this consumer confusion.

HTC heres to changeAlso, we recently saw the first fruits from HTC’s $1 billion ad campaign featuring Robert Downey Jr. and “Hipster Troll Carwashes”. This is a long term brand identity move, which should net positive results, but HTC is also in need of some short term sales to help boost confidence internally and with potential customers. They need evangelists and fans who will tout the company line, and be a grassroots first line of attack when new handsets are released.

Recent moves have been smart, HTC is trying to build a presence on sites like Reddit, and they’ve been more active on social media sites. It’s a tough road to build that kind of loyalty however. Their 716,000 Twitter followers are nothing to sneeze at, but pale in comparison to Samsung’s 4.4 million, and comparing recent tweets, actual engagement with likes and retweet action mirrors those follower numbers.

So while their long term strategies look sound, this isn’t a market known for patience, and that magical recipe for pairing good products and actual sales has been eluding numerous companies of late.

See my hands on reviews for the HTC One and the HTC One Mini.

(via WSJ)

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