Despite the launch of major new devices like the Droid DNA, One X+ and Windows Phone 8X, HTC's revenues and profits fell once again in the final quarter of 2012. Today the company reported fourth-quarter revenues of NT$60 billion, or $2.03 billion U.S. (down from NT$70.2 billion in Q3), with gross margin of 23% and operating margin of 1% (down from 25% and 7% respectively). Net profit and EPS (earnings per share) also fell, the former from NT$3.9 billion to NT$1 billion, and the latter from NT$4.7 to NT$1.21.
HTC expects things to get worse in the first quarter of 2013, predicting Q1 revenue in the NT$50-60 billion range, with a gross profit margin between 21 and 23% and operating margins between 0.5 and 1.0%.
Despite the grim outlook, HTC CEO Peter Chou is optimistic about the company's prospects in 2013 --
“We continue to focus on the most important element of our business: innovation,” said Peter Chou, CEO of HTC. “Our teams are delivering beautifully designed phones, containing the newest technological advancements. Outstanding products, paired with improvements in our marketing execution and overall readiness give us reason to feel optimistic about the progress we will make in 2013.”
That progress, if it comes, will start with the launch of the company's first major Android phones of the year, rumored to be a 4.7-inch, 1080p device codenamed "M7," and a 4.3-inch 720p phone known as "M4." HTC has scheduled press conferences in London and New York City for Feb. 19, just ahead of Mobile World Congress, and we'll learn more at those events.
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