HTC Predicts 36% Quarterly Revenue Drop

HTC – the Taiwanese-based handset manufacturer predicts that the country will announce a lower than expected financial numbers for its prevailing quarter.  According to company, it is expecting to see a 36% drop in its revenue compared to the last quarter of 2011.

Taiwanese manufacturer calculates that its revenue fell from $3.44 billion (T$101.42 billion) to $2.20-$2.37 billion (T$65 billion and T$70 billion) in its last quarter. The company, however, hopes that this drop would be ‘short term’, according to Reuters.

On the other hand, the company is all set to exhibit four new devices at the forthcoming Mobile World Congress at Barcelona. There will be ultra-thin smartphones in the new devices as well with an aim to distinguish its products from rest of the devices available in the market and to regain its market position.

The company forecasts a drop in revenue after announcing its fourth-quarter financials last month. The company saw a loss in profits for the first time over the two years’ time. The decline in profit was caused due to the decrease in handset sales that sunk to 23% with company sold 10 million units in the last quarter.

For last three or four months, the company is experiencing a drop in sales. For instance, HTC announced its November financials in December that showed a drop of 30% over the month of October, 20% down from the sales of same period in 2010.

HTC, the fifth biggest smartphone maker announced that its consolidated sales for November fell to $1.03 billion (T$30.94 billion) from $1.27 billion (T$38.48 billion) in 2010, while $1.46 billion (T$44.11 billion) in October 2011.

The recent slump of HTC comes as a result of its fellow Asian handset manufacturer Samsung keep flying with its range of Android-based phones and tablets. The South Korean electronics giant announced record profits for the final quarter of 2011. However, Samsung didn’t confirm whether it had sold 35 million units during three months.

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