HTC Q4 Profit Drops for the First Time in 2 Years

HTC, the Taiwanese smartphone manufacturer released its fourth quarter financial report, according to which its first quarter profit drops in two years, losing its ground on competitors including Apple and Samsung.

HTC released its report on its official website revealing that Q4 net income dipped 26% to NT$11 billion ($364 million) from NT$14.8 billion a year ago. According to company, its revenue dipped to NT$101.4 billion ($3.34 billion), a 2.5% decline over its previous year’s figure.

The decline in revenue is caused due to a drop in smartphone shipments by over 3 million units, which means that the company shipped only 10 million units in last quarter. The company sold some 13.2 million devices in its third quarter.

HTC revised its forecasts for the fourth quarter, expecting its Q4 revenue would remain the same as that of the previous year, i.e. $3.4 billion. Its previous estimates stood somewhere at $4 billion. The company clearly missed the estimates.

“Due to global macroeconomic downturn and market competition, the assumptions of 2011 Q4 financial forecast provided earlier are no longer applicable,” the company said.

HTC released its November financials last month, claiming 30% drop in sales over the month of October and 20% decline over the period of one year.

HTC is the world’s fourth largest smartphone maker but it reported a decline in sales for the month of November. Its sales dipped down to T$30.94 billion ($1.03 billion) from T$38.48 billion ($1.27 billion) a year ago, while its sales stood at T$44.11 ($1.46 billion) in October of last year.

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