HTC may be riding a wave of good publicity following the launch of the One X and One S, but things aren't looking quite so rosy on the financial side. The Taiwanese manufacturer released its unaudited financial results for the first quarter of the year today, showing of NT$67.8 billion (~$2.3 billion), down from NT$104.2 billion (~$3.5 billion) for the same quarter last year -- a 35% drop. Similarly, HTC's operating income shrank from NT$16.5 billion in Q1 2011 to just NT$5.6 billion in the last quarter.

Back in February HTC said it was expecting a weaker Q1, due to "product cycle transition", insisting this was a "temporary phenomenon." Q4 2011 and Q1 2012 were dominated by the iPhone 4S launch, along with continued strong success for HTC's main Android rival, Samsung. The manufacturer will be hoping to recapture consumers' imaginations with new "hero" devices like the HTC One X and One S, which launched in Europe yesterday.

Source: HTC (PDF)