HTC profits for Q4 of 2011 drop as competition heats up in the Android segment
After a great Q3 of 2011 where the Taiwanese company posted a $624 million profit, HTC is now reporting that year-over-year profits in the fourth quarter of 2011 dropped 26% to $364 million. This is the first drop in profit for HTC in the past two years and analysts are predicting that this decline will continue into the first quarter of 2012. The popularity of Apple’s iPhone, as well as the recent release of the Samsung’s Galaxy Nexus, are partially to blame for the revenue decline. Bloomberg notes that the weakened global economy is also a contributing factor to the diminishing of HTC’s profit.
With CES 2012 set to kick off in just a few days we anticipate HTC will be unveiling a few new devices that may help the company get back on the right track. Hopefully launching these new devices, as well as the release of it’s new Quattro Tegra 3 tablet later this year, will bring back the great profits HTC generated last year.
Do think there is reason for concern? Do you think launching a few new devices will help turn things around or should HTC focus on a change in strategy?