HTC Profits Fall 57% Due To Apple Injunction
In April 2012, HTC had blamed the popularity of iPhone 4S for the decline in its profits. Now an injunction from Apple really made the profits of HTC fall drastically.
It may seem like nothing ever comes from all of these ongoing patent lawsuits. However, that is not always the case.
HTC’s shipments of its flagship handset were held up at US Customs back in May 2012 due to an injunction order.
The delay only lasted a few weeks. However, it left HTC unable to get its One X and other handsets into the hands of customers on launch weekend. Now the company has cited it as one of the main reasons why its profits plunged last quarter.
“Taiwan smartphone maker HTC Corp (2498.TW) saw profit more than halve in the second quarter after European sales disappointed and phones destined for the U.S. market were held up by customs inspections.”
This is a devastating news for HTC, who was already in a downward spiral prior to the Customs issue. After years of leading the smartphone industry, now HTC has watched the likes of Samsung and Apple quickly overtake the market. In Q1 of this year, HTC took a backseat to both Nokia and Blackberry from Research In Motion (RIM) in smartphone sales.
It does not look like its luck is going to be turning around anytime soon either. Even with its new One X receiving thumbs ups from tech reviewers, HTC is still having major problems moving handsets.
However, Apple’s legal team should be the main cause of concern for Taiwan-based smartphone maker right now.
Source: iDownload Blog