HTC forecasts lower revenues, thinner margins after reporting poor Q4 financials

HTC stock will take a hit after news that the company saw a significant downturn in revenues during the fourth quarter of 2011. While annual revenues were up overall (465.79 billion Taiwanese dollars in 2011 compared 278.76 billion in 2010), the surge seen for most of the year trailed off as HTC’s take for the final months of 2011 lagged at 101.42 billion Taiwanese dollars. The drop off follows four quarters of successive growth that saw revenues rise to 124.40 billion in Q2 and 135.82 billion in Q3. Despite the overall increase in revenues, profits for 2011 were down 11.88 percent.

WIth the poor end-of-year performance, HTC is forecasting unfavorable results heading into the new year. Revenues for Q1 predicted by independent analysts to be close to 90 billion Taiwanese dollars have now been dropped to 65-70 billion by HTC’s own financial department. The smartphone manufacturer hopes the downturn is only temporary and expects the announcement of new devices at Mobile World Congress to spark increased revenues though ever shrinking margins (tracking at 7.5 percent, a three-year low) may continue to dig into profits.

[HTC via The Verge, Engadget]

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  • ratnok

    Maybe if they made a stock Android devices that got updated immediately to complement their Sense devices they could get more sales. They could also save money of software development in the process.

  • Patrick

    Make me a 5″ 720p HD Display ,2.0 ghz quad core, , verizon 4G LTE, Beats Audio, 8 mp + 2 mp camera, android 4.0, sense 4.0, kickstand just like the thunderbolt, unlocked bootloader, 3300+mah battery, sleek black with metal unibody, htc device. I would buy it in a heart beat.

    • feztheforeigner

      HTC isn’t God, let’s be a little more realistic. All of the above in a Motorola/Google Nexus.

  • http://pulse.yahoo.com/_UDULQFCLEXI4PRUQGIBNGEWVKQ John

    HTC is going to get RIMMed if they don’t start innovating again soon. 3D and Beats doesn’t count. don’t blame Android commoditization. if you innovate you will be successful – see Samsung. if you are lazy and stop innovating and ignore customers and lose focus you will die. over the last year – many of us have told HTC what they need to do to once again earn our business – but they play deaf and dumb and keep mindlessly spitting out the same tired and dated EVO-derivatives (including the upcoming the lackluster yawner “Ville”) with gimmicks and bloat. so be it. live by the sword and die by the sword. just don’t blame Android when you fail. i don’t want Android competitors to point to HTC’s failure and blame Android. if HTC fails it will be their own fault. HTC told us that they will focus on quality and offer “something special” and not quantity in 2012 but i don’t see it yet. these poor results are predictable.

    do you hear me Chou?

  • brian

    They need to look at the evo, then look at the successful phones out now. Then make an evo with the components that make the new phones successfull and bam. Such as 12mp camera dual core processor clocked over 1.3 gigs, obviously a front camera that is nice enough. And ics. That’s it you don’t need too many gimmiks and shit just a nice phone. People dig the sense shit but quality hardware with an unlockable bootloader is gonna be a recipe for winning.