Mobile

Samsung predicts record $9.4B profit, while HTC confirms first loss ever

Above: HTC One and Samsung's Galaxy S4

Image Credit: Devindra Hardawar/VentureBeat
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It was the best of times, it was the worst of times … in the smartphone market.

Looking at the latest earnings details from Samsung and HTC, it’s hard not to notice just how much they tell two very different tales. While Samsung expects to see its best earnings yet in the third quarter, with revenue of around $53.9 billion and profits of $9.4 billion, the once-successful HTC has confirmed a $119 million operating loss for the last quarter.

The results aren’t too surprising: Samsung has been king of the hill among Android phones for years now, and its seemingly limitless marketing budget has helped to make its Galaxy S lineup a steady success. HTC, on the other hand, has struggled to find a hit ever since it was dethroned by Motorola (ever so briefly) and Samsung.

In comparison, Samsung last year saw $51 billion in revenue and $8.5 billion profit for the same quarter last year. The company saw similar growth in its last quarterly earnings report, although investors at that time were disappointed by slower-than-expected Galaxy S4 sales and worried that Samsung was diluting its brand with too many Galaxy S variants.

I still consider HTC’s One smartphone to be the best Android device on the market, so I’m hoping the company manages to turn itself around and continue building innovative devices. HTC just kicked off a $1 billion marketing campaign starring Iron Man actor Robert Downey Jr., which it hopes will compete against Samsung’s marketing machine.

More about the companies and people from this article:

formerly High Tech Computer Corporation, is a Taiwanese manufacturer of smartphones and tablets. The company initially made smartphones based mostly on Microsoft's Windows Mobile operating system (OS) software, but in 2009 it began to ... read more »

Samsung Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest Sout... read more »

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