The latest financial figures are in from HTC, and the company's first quarter results make for bleak reading.
Net profit is down 70 per cent on the previous year. Bloomberg noted that the profit of NT$4.46 billion ($151 million) was lower than the average of 17 analyst firm's expectations, which was NT$4.62 billion.
Revenue dropped by 35 per cent to NT$67.8 billion, again lower than the average analyst expectation which was NT$71.1 billion.
Back in February, the company had already admitted it had made some major mistakes in the fourth quarter.
Chief Financial Officer Winston Yung said: "We simply dropped the ball on products in the fourth quarter. The form factor could be better and the product design could be better. So we've learned lessons from the fourth quarter products."
He then noted that the first quarter would be a transitional one, and he was fully expecting a decline in sales - as has turned out to be the case.
Since the success of the HTC Desire, the company has struggled to recapture that momentum in the face of challenges from Android competitors, most notably Samsung which has dominated with its Galaxy S smartphone. Not to mention the iPhone...
The big new hope for revitalisation is the HTC One series. As we noted a couple of days ago, the quad-core One X is a serious Galaxy S3 rival, particularly considering it can be scooped up on contracts from £26 per month.
There is hope for HTC yet, but the company is looking increasingly financially fragile given the current picture.
Source: Bloomberg (opens in new tab)