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HTC reported 26% profit decrease

The Taiwanese smartphone maker HTC reported on the first drop in profit in two years. Between October and December 2011 the company reported a decrease in financial results by 26% to 364 million dollars in a decrease of 2.5% in revenue to 3.35 billion dollars. The negative results were expected and already in November 2011 HTC said it would cut its forecast for earnings of 23% to 3.4 billion dollars. In November Taiwanese reported 20% drop in revenue over the same month of 2010. The reason for the reduced expectations Wall Street Journal named the increasing competition in the smartphone and the uncertain future of the global economy. HTC itself has not commented on the data. It turns out that the adjustment was justified, and the proceeds are slightly less than forecast - 3.35 billion dollars.
"HTC does not have the same brilliance behind the design and marketing from Samsung, but meanwhile, refuses to offer low-end phones that are popular in China," said an analyst at Yuanta Securities Co. However, the company is confident that the situation is not so "serious" and hopes that its new proposals in 2012 will return to consumer confidence. In February, HTC will introduce smartphones and tablets with quad processors and next week is likely to have other interesting devices at CES in Las Vegas.