Taiwan's HTC says first quarter profit down 70%

HTC says its operations should turn around in the second quarter
New versions of HTC's 'One' smartphone on show at a a press conference in Taipei last month. Taiwan's top smartphone maker says net profit in the first three months of the year plummeted 70%, to the lowest since 2006, owing to falling demand.

Taiwan's top smartphone maker HTC said Friday net profit in the first three months of the year plummeted 70 percent, to the lowest since 2006, owing to falling demand.

Net profit in the first quarter came in at Tw$4.46 billion ($148 million), compared with Tw$14.83 billion a year ago and Tw$10.94 billion in the October-December period, the company said.

Revenue in the period fell 35 percent to Tw$67.79 billion year-on-year, it said in a statement.

The losses come as the slows, with key markets in the United States and Europe mainly hit.

HTC sells its own smartphones and also makes handsets for a number of leading US companies, including Google's Nexus One.

The company has recently unveiled a new series of smartphones as it looks to compete in the huge market against Apple's and Samsung Galaxy.

"While HTC's operation is likely to turn around in the second quarter with its launch of new 'One' series smartphones, there are uncertainties over its shipment momentum from the third quarter as Samsung and Apple are expected to launch ," said Bonnie Chang, analyst at Yuanta Securities.

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(c) 2012 AFP

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Apr 06, 2012
HTC makes good phones, I love my EVO... hope they can recover.

Apr 06, 2012
What are you talking about?

I got my EVO 15 months ago and don't plan on replacing it for another 9 or so... It's anything but a "waste of money", I use it daily to do things I would otherwise have to be sitting at a screen to do. It saves me time, so whether or not it's a waste of money for you depends on how much your time is worth, the time that I save using the "smart" aspect of my smart phone is worth more than the paltry cost of the phone.

Apr 06, 2012
Yeah VD, if you owned a cell phone rather than living like the unibomber in a little secluded shack cut off from the rest of society you would know that cell phone service contracts are typically 2 years, so in 24 months I will get a top of the line new phone for no additional charge as long as I keep my current service plan.

There is nothing wrong with 2-year product life cycles, most things in high tech are that or even shorter.

Apr 06, 2012
2 year companies and jobs?

Do you ever have any damn idea what you are talking about?

If a cell phone manufacturer goes out of business after one product then they were destined to fail regardless.

The important jobs that are maintained by cell phone manufacturers include primarily electrical engineers and software engineers... a company does not scrap it's entire engineering team after each product rollout you big dumbass.

Apr 06, 2012
This is the company we are talking about:

You would be lucky to get a job with them as a janitor, but you are disparaging them for a reason I haven't yet figured out.

Apr 07, 2012
Clearly you know nothing about the software industry.

I'm a professional software/firmware engineer with 10 years in the industry. I develop fiber optic test and measurement equipment including optical time-domain reflectometers, optical spectrum analyzers, chromatic/polarity mode dispersion analyzers, and optical loss test sets, among others.

You have no idea what you are talking about.

Apr 07, 2012
How much is HTC's profits down again DeathClock?

70% isn't it?

Their PROFIT is down... they are still turning a profit and they are still viable. HTC isn't going anywhere, they make some of the best phones and tablets available.

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