HTC had some bad news in Q4 reporting that its quarterly profits had dipped for the first time in 2-years. In October of 2011, HTC reported its Q3 financials and posted up profits of $625 million. One of the most surprising parts about HTC seeing its profits slip is that in November 2011 the company had the lead in the smartphone market in the US.
Nevertheless, HTC reported its first quarterly profit dip in two years as its Q4 net income dropped 26% compared to the same quarter of 2011 to $364 million. To heap on more bad news analysts are expecting that the profits for HTC will continue to fall even further this quarter. HTC cut its outlook for revenue last quarter. Part of the blame for the declining profits is that HTCs smartphones are being overlooked in the high-end by consumers.
Consumers are instead opting for the slick line of Samsung Galaxy devices or the iPhone. Another reason for the falling profits is a softening global economy. Bloomberg reports that shipments of HTC devices dropped to 10 million units, and that number is expected to fall to 8.5 million units this quarter. HTC needs an interesting high-end halo device very badly.
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