HTC Q2 results: 12.1M smartphones, 124% growth. Tablets sales very low, 6-8 new devices promised
HTC has just reported their Q2 2011 results, and with this report we can consider the second quarter earnings season officially over.
The highlights of the first half of 2011 were Nokia, Apple and Samsung. Nokia continued it’s smartphone market share dive which started in the second half of last year, and now accelerated into huge losses. Apple’s iPhone continued it’s gravity defying growth, making Apple #1 smartphone maker by unit volume this Q.
The biggest question in April-June was about Samsung – will it accelerate it’s smartphone growth further, to challenge Nokia and Apple for a smartphone top spot? Now we know the answer. While Samsung’s growth was pretty darn good, it seems that it still haven’t been able to beat Nokia in a smartphone game. Most of the analysts disagree with that, and say that Samsung shipped more smartphones then Nokia in Q2. But the way Samsung has obfuscated it’s mobile phone unit’s numbers this time, makes me convinced that the real Samsung smartphone numbers in Q2 are lower then Nokia’s.
Now let’s get back to HTC. The Taiwanese smartphone up’n’comer turned in another stellar quarter, as expected. Between April and June HTC has shipped 12.1 million devices, most of them Android smartphones, turning in very impressive 124% year on year, and 25% quarter on quarter growth.
HTC is thriving among the competition, and it seems that nothing can stop them.
Well, until/unless Apple messes things up with it’s patents, pushing HTC Android phones out of U.S. market. But that threat is most likely still years away, and if worst comes to worst – HTC can always switch to Windows Phone and continue their merry ways.
Speaking of patents, HTC isn’t sitting idly, waiting for the courts to rule. It is buying available relevant patent portfolios left and right, to strengthen it’s own IP war chest, and to get it’s detractors to negotiating table. This quarter they’ve “Acquired 235 issued patents and patent applications from S3 Graphics for US$300 million – to strengthen patent portfolio and enhance royalty cost structure” . Which could help a bit.
HTC has launched it’s Flyer tablet this quarter. But nobody seems to care enough about it to buy one, just as they do not care much for other Honeycomb tablets. HTC has refused to dislose the specific numbers, and stated explicitly that they do not expect much from tablets this year.
The fastest growing region for HTC today is Asia – their sales grew 260% there, with expected 200% YoY growth in the second half of the year. China was the biggest part of this growth. Overall, the biggest market for HTC is still U.S. and it seems that Europe is the hardest to crack.
As for the future products – HTC promised 6-8 new devices in H2 2011. Some of them will be tablets, some of them will be Windows Phones, but most of them will still be Android smartphones.
When asked specifically what they think about Android alternatives, HTC managers stressed that they have no plans to become single platform (exclusively Android) vendor. HTC acknowledged that WP7 sales were disappointing due to multiple factors, but reaffirmed their continuing support for Windows Phone platform. And actually said that they like WP Mango very much, will continue to support Windows Phone platform, and look to what the market tells them about it. More or less confirming that HTC will have at least one Mango phone in the market.
As you may know – HTC is working on their own content services to be offered exclusively on HTC smartphones. Today HTC promised some “very exciting” new content related things before Christmas. And hinted that they expect 70 to 80% of their content strategy to start unfolding by the end of the year.