HTC has reported a 26 percent drop in profits for the fourth quarter of 2011.
The company, which did pretty well for itself with a revolutionary line-up of Android based devices, has succumbed to market competition from Apple and Samsung. Both companies have enjoyed immense popularity with their devices.
According to the unaudited financial results released by the company, it made a profit of 11 billion Taiwanese dollars or £236 million in the fourth quarter of 2011, a drop of 26 percent from the 14.8 billion Taiwanese dollars it had reported in the fourth quarter of 2010.
HTC, which plans to launch new Android based superphones at the Consumer Electronics Show, also reported a 2 percent drop in its revenue.
HTC rival Samsung, which became the world's largest smartphone maker in the third quarter of 2011, posted a record rise in profits and sales during the fourth quarter.
"The market has already expected HTC to report weak handset shipments in the first quarter as it is always a low season after strong holiday sales in the fourth quarter," Aaron Jeng, an analyst at Nomura, told The Wall Street Journal.