HTC has ended a difficult 2012 with its profits plummeting by 95%.
The Taiwanese smartphone maker failed to capitalise on its early promise in Android smartphones and has been hit by the rise of rivals such as Samsung. In its fourth quarter results, HTC said its profits were NT$600m (£12.9 million), down sharply from the NT$12.9bn (£277.4m) it posted in the fourth quarter of 2011. Profits also fell by 88% on the previous quarter.
Sales also fell by 41% year on year to NT$60.0bn (£1.29bn). Despite the launch of its Windows Phone 8 handsets during the fourth quarter, sales also dropped by 14% on Q3.
Looking ahead, the manufacturer said sales and margin could fall further during its next trading quarter. Peter Chou, CEO of HTC, said: 'We continue to focus on the most important element of our business: innovation. Our teams are delivering beautifully designed phones, containing the newest technological advancements. Outstanding products, paired with improvements in our marketing execution and overall readiness give us reason to feel optimistic about the progress we will make in 2013.'
The first glimpse of HTC's plans for 2013 will be seen later this month when it announces its latest flagship handset, the M7.
Author: Graeme Neill