Thanks to the Galaxy S3, Samsung is sitting pretty atop a pile of money, lighting cigars with £50 notes. That’s what the second quarter profits show, anyway, though we’re not using exact financial terminology. HTC, meanwhile, saw its profits halve.
Can its One range bring HTC back to its former glory?
Some good news to hearten Samsung in these days when Apple is having its products banned: its profits more than doubled, soaring to a whopping $5.89 billion (£3.7 billion) in the second quarter of this year. No doubt its Galaxy S3 helped somewhat. But Samsung’s TVs and home appliances aren’t selling nearly as well.
One exec who didn’t want to be named told Reuters, “Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level.
“Our smartphones are flying off the shelves, with some outlets reporting 40-60 per cent sales growth, but that’s distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro.”
Things are more clear cut for HTC though: it’s shafted. Profits more than halved in the second quarter, with European sales disappointing. Its One range launched following Mobile World Congress, but so far it’s failed to help the company’s fortunes.
The problem seems to be one of positioning. Apple and Samsung have the high end sewn up, and despite the power of the One X, HTC has failed to convince enough people to shell out.
HTC is blaming the poor economic situation in Europe, the same reason Samsung gives for its poor showing in TVs and home appliances. Though the success of Samsung’s mobiles shows that if you have a killer product, the economy doesn’t really come into it.
Sony and Panasonic have also been struggling of late, with profits tumbling and job losses aplenty.