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HTC warns first quarter revenue could by down 36 per cent

But problems are ‘short term’, it claims
Mon Feb 06 2012, 13:51

TAIWANESE PHONE MAKER HTC has warned that its revenue could fall as much as 36 per cent in the first quarter, signaling that its struggles are far from over.

According to Reuters, HTC said on Monday that it foresees a drop in revenue of as much as 36 percent in the first quarter to between NT$65bn and NT$70bn ($2.20bn to $2.37bn), from NT$101.42bn in the three months previously.

However, the firm said the problems will be "short term" as it prepares to launch new models.

HTC is expected to launch four smartphones at Mobile World Congress at the end of this month, including a quad-core model and and ultra thin device called the HTC Ville.

The company's position is a far cry from early last year, when its popularity was surging.

Last month, HTC said it will focus on delivering a few 'hero' devices in a bid to claw back market share after a poor financial performance last year.

HTC UK executive director Phil Roberson said the company will focus on releases of high-end devices in the second quarter. He also said that the firm is pulling back in the tablet market, although not pulling out completely.

Earlier this month, we reported that HTC had announced its first ever decline in profits of nearly 26 per cent in the fourth quarter of 2011.

The firm released disappointing figures for the last quarter of 2011, with net income after tax of New Taiwan (NT) $11.02m. For comparison, in the same quarter in 2010 it recorded net income of NT$14.8m, a drop of 25.5 per cent.

November was a particularly poor month for the company, which saw year-on-year revenue fall 19.6 per cent. µ

 

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