Taiwan-based smartphone maker HTC has posted a 30 percent drop in its first quarter net profits as against the same period a year ago, as global economic downturn and delayed shipments took its toll over the company’s earnings during the period.
The company notified that its net profits for the first quarter that ended on 31st March were plunged considerably to $146.7 million, as against profits worth $210 million posted by the company a year ago.
Furthermore, the total revenues for the company also slid notably by 3.4 percent to $954 million from $997 million registered for the same period a year back.
The company attributed delays in shipment as one of the major reasons for such considerable drop in profits, as the launch of its much-touted Android powered HTC Magic smartphone, due to be shipped with Vodafone in UK and T-Mobile in the US, has been delayed to May.
In spite of the cumulative decline in revenues, the company claimed that its sales in March grew by an impressive 12 percent, due to the advent of new range of Touch smartphones.
Moreover, the company is pretty confident about its performance for the rest of the year and upheld its predictions of double-digit growth for 2009.
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HTC has yet to capitalise fully on the lead it has in the Android market. The company launched the first smartphone based on Google's OS platform back last year and is set to launch the second model six month later. However, based on the leaks that came out earlier this year, HTC is going to launch only two more Android phones by the end of the year. Will it be enough to reverse the company's slide in profits?
(The Wall Street Journal)