HTC who are a big favourite at Telstra is facing a rough start to 2012 with the Company reporting a 26% fall in profits, sales fell 2.5% as consumers chose an Apple iPhone or a Samsung Galaxy smartphone over a HTC model.
In Australia carriers like Telstra, Vodafone and Optus are reporting strong demand for smartphones from Apple Motorola and Samsung, HTC is not saying how local sales are going.
Analysts say Samsung’s record fourth-quarter earnings was driven by its smartphone business, rivals HTC are suffering due to heightened competition.
One of the first vendors to offer Google Android phones HTC is under pressure wit5h the Company spending little on the marketing of their products when compared to Samsung and Apple.
Samsung, didn’t become a force in Android phones until last year, and Apple’s strong showing for its new iPhone 4S is creating further pain for HTC who is also at the center of a widening patent battle with Apple and other telecommunication patent owners who are sueing or have sued HTC during the past 12 cmonths.
HTC, said net profit for the fourth quarter fell 26% to US$365 million. Revenue for the period fell 2.5%.
to NT $101.42 billion from NT$104.01 billion.
Motorola Mobility, another early Android adopter, said over the wqeekend that it estimates its fourth-quarter sales will come in at $3.4 billion, below the $3.88 billion expected by analysts.
Motorola who was acquired last year by Google and said the deal should close early in 2012.
Shares of HTC have fallen 46% since the start of last year as a result of the intense competition and uncertainties over its patent disputes with Apple.