Fourth quarter plummets to lowest since 2004
Profits for Taiwanese mobile phone maker, HTC, have suffered a massive downturn, Q4 results have revealed, as the company continues to be hit by competition from rivals Apple and Samsung. According to Bloomberg, HTC’s net profit for the period of T$1 billion ($34 million; £21 million) was not only 90 per cent down on the same quarter for 2011, but represented the manufacturer’s smallest quarterly profit since 2004. But with no major products launches during the period to boost sales, losses were not as bad as analysts feared and it’s thought the worst may now be over.
HTC is also rumoured to be on the verge of launching a new flagship device, codenamed M7, which may even make an appearance at this week’s 2013 International Consumer Electronics Show opening in Las Vegas this week.
Commented Birdy Lu at Daiwa Capital Markets: “The first three months of this year will be better than the fourth quarter of 2012, which was really bad, but HTC’s earnings might not have fully bottomed yet if its flagship M7 sales disappoint this year.
He added that HTC’s new handset, thought likely to be available around March, could give the company a lead for one or two months before Samsung launches its Galaxy S4 in April, “but in the long run, it’s difficult to beat Samsung’s phones.”