HTC had already lowered its Q4, 2011 earnings expectations, and it did so with a good reason. For the last quarter of 2011, the company saw its revenue fell by a whopping 2.49% year-on-year and by more than 25% compared to the Q3 of 2011.
The company had already released its Q4 earning last month, but has again released its revised audited earnings today. The company’s consolidated revenue fell by a whopping 52.88% Y-o-Y (Year-on-Year). The Taiwanese manufacture expects a weaker Q1 of 2012 as well, due to “product cycle transition”. HTC’s CFO, Winston Yung, also said that the company “dropped the ball” with its over-sized and thick LTE handsets, which offered poor battery life. The company’s gross profit margin also fell continuously throughout the year.
HTC had literally spammed the market with similar, thick and over-sized handsets, which performed poorly and had extremely poor battery life. I am glad to see that HTC finally realized its mistake, and is working on rectifying it.
HTC expects to release a true ‘’hero’’ device in 2012, and release quality handsets over quantity. The company will release its next-generation handsets at MWC (Mobile World Congress) at Barcelona, next month.