4/24/2012 3:25:25 PM
Profits at HTC slump 69% for first quarter
HTC's prediction of a poor first quarter was fulfilled as it revealed a 69% slump in profits for the first three months of 2012.
Sales also fell sharply at the maufacturer, down 34.9% to NT$67.79bn (£1.42bn). Operating profit fell from NT$16.47bn (£346.2m) in 2011 to NT$5.10bn (£107.2m) in 2012. HTC blamed its switch to the new One series of smartphones for the drop in sales. Gross margin was down 4.3% to 25.03%, which HTC said was because of the margins of older products and a lowered scale.
HTC CEO Peter Chou said: 'The last two quarters were a ‘rebuilding’ period for HTC. We focused on creating and launching our next family of hero products, the HTC One, while continuing to grow our brand awareness and preference globally. The market response to the One has been very positive and - combined with regionally focused devices - we believe it will take HTC into its next phase of growth.'
However, the manufacturer warned of a difficult second quarter, with sales of around NT$105bn (£2.21bn), down from NT$124.4bn (£2.62bn) in 2011. Gross profit margin will be down from 28.8% in 2011 to 27% for its second quarter of 2012.
Editor: Graeme Neill