HTC's Q4 profit tumbles 31%

Dylan Bushell-Embling
07/01/2010
News
Daily News

Taiwanese handset maker HTC has announced that its Q4 net profit fell 31% year-on-year, as the vendor suffered from intensifying market competition.

recorded

missed analysts' expectations

Reuters.

Revenue fell 13.2% to NT$41.08 billion, squarely in the middle of the company's forecast that was revealed in November.

For the full year, the company reported a net profit of NT$22.65 billion, from revenue of NT$144.89 billion.

But the company's fortunes were showing signs of improving by the end of the year, when HTC reported its first year-on-year profit growth since July.

HTC's development of Google's recently-launched Nexus One handset may also help to reverse the company's ill fortunes, analysts said.

Macquarie Securities has predicted that HTC could ship 2 million Nexus Ones this year. But Citigroup has warned that HTC could accrue lower profit margins from the handset – and its lower price relative to most of HTC's current smartphone offerings could also serve to drive down prices across HTC's range.

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