While Huawei was the clear success story of the year, it came at the expense of veteran manufacturers in the market, HTC being among them.
According to latest available figures, the company’s revenue fell by over a third in 2016 alone. At the end of the year, it stood at $2.43 billion, a 35 percent decline over the previous year and the revenue numbers are the worst 11 years. In the last month of 2016, it dropped to a new five-month low of $199.96 million, even though that’s the season where most of the sales traditionally occur.
For the overall quarter, the company recorded a revenue of NT$22.2 billion, with a loss of NT$2.18 per share, meaning it likely had a seventh quarter straight in the red. In the previous three quarters, it had posted operating losses of NT$4.8 billion, NT$4.2 billion and NT$2.0 billion.
There is still hope for the company. Apart from manufacturing Google’s critically acclaimed Pixel handsets, the company has its Vive VR. However, a higher price point could impair growth there too. HTC is announcing a new device on January the 12th, and hopefully that will cause more than a sizeable dent.
HTC’s 10 flagship was also mired by what users deemed a higher price than it deserved, specially in a market which is saturated with offerings such as the OnePlus.
HTC’s fall has been marked with a meteoric rise in Huawei’s market share, The company recorded $25.72 billion in sales, up 42 percent over the past year, by selling 139 million phones in 2016 alone. Such success levels are usually achieved at the expense of others and in this case that appears to be HTC.