HTC’s financial results for the last quarter of 2011 are out and they are not so good. Furthermore, the company expects Q1 2012 to follow the same path.
Despite profitable Q2 2011 and Q3 2011 results the Taiwanese company has taken a hit in its sales in the last three months of 2011. As a result, the revenue plummeted 25.33 percent QoQ, and just 2.49 percent year-over-year to $3.44 billion (NT$101.42bn).
Profits have also taken a toll falling 12 percent year-over-year to $933 million (NT$27.5bn). On the upside, though, HTC have stepped up their game compared to 2010 and for the whole 2011 the revenue was $15.73 billion (NT$465.79bn), which is 67% up year-over-year.
In its business outlook, HTC doesn’t expect any miracles happening in the first quarter of 2012 with a revenue expected to be around $2.2-2.4bn (NT$65-70bn) with a gross margin of 25 percent.
Nevertheless, HTC seems confident and “…despite short-term difficulties, momentum will resume in the upcoming product cycle driven by HTC’s brand strength, innovation, and design/engineering capabilities.”
Undoubtedly, the Taiwanese company will have the chance to justify its optimism in the end of the month during the Mobile World Congress in Barcelona. There, the company is expected to unveil its new “Hero Strategy”, emphasizing on quality (high-end specs) rather than quantity (multiple higher midrange phones).
HTC had an overall good 2011 but an unimpressive Q4