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HTC And Samsung Fall Short Of Expectations

 

Mobile phone giants HTC and Samsung ended last week on a rough note, falling short of sales expectations. HTC, in particular, was hit hard by a 83% drop in profits from last year, while Samsung, who still banked a cool $8.3 billion, fell short of their goals for this past quarter.

Cutting into both companies profits heavily were larger than usual marketing costs as both companies heavily pushed their flapship phones, the HTC One and the Samsung Galaxy S4. Both gadget companies' fortunes now rest on their next wave of phones.

HTC is putting all their eggs in the HTC One Mini basket. The HTC One Mini is a smaller version of the highly-rated HTC One, and will reportedly feature a smaller screen and somewhat slower processor. For fans of the HTC One, don't worry, this phone still features that solid aluminum body that really makes the phone feel excellent in your hands.

Likewise, Samsung is pushing their own miniature device. The Samsung Galaxy S4 Mini follows the pattern of HTC's mini phone, featuring a smaller screen, and poorer performance to go with a less sophisticated camera.

Both phone companies are betting it all on smaller being better in the next wave of the phone battle. The battle is particularly important for Samsung, who rely on their mobile phone division to bring in up to 70% of their total profits. Samsung is also a world leader in electronic components and other consumer electronics. The company is also looking to up its cash flow to fund five new research centers to boost their Research and Development department. Also, not far down the road is the next phone from electronics giant Apple. Both companies have to have their eyes and ears open to see what the heavyweight smartphone maker has coming down the pipe and how it will effect their bottom line.

One thought on “HTC And Samsung Fall Short Of Expectations”

  • Jana

    Another reason why diversifying is quintessential for a company's longevity. Putting all their eggs in one basket is always bound to be potentially fatal in the end. If HTC and Samsung ever want to prosper further then they need to develop remarkable products while still remaining reliable at the same time.

    How will this affect both companies stability for the future?

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