HTC profits plummet by 79 per cent | Mobile Industry | Mobile Entertainment

HTC profits plummet by 79 per cent

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Mike Shaw

by

Industry / Market Data / October 10th 2012 at 3:21PM

Taiwanese company's fortunes fade as competition stiffens

With HTC's financials for Q3 2012 looking bad, the reasoning behind the firm's decision to manufacture Windows Phone handsets became clearer.

With a prior focus on Android devices, HTC's net profits have fallen by 79 percent year on year to NT$3.9bn ($133m; £83m) during the July to September quarter, down from NT$18.68bn a year earlier.

After the release of the well-received HTC One series, it was hoped figures would start to rise, but with the dominance of Samsung and its Galaxy phones, that wasn't the case.

Now the company seems to be pinning its hopes on its two new Windows Phone devices, the 8X and 8S.

However, analysts have said that the new devices are unlikely to have a significant impact on HTC profits.

Dennis Chan, analyst at Yuanta Securities in Taipei, said: "The new models we saw in the past few weeks are not going to change the game.

"[HTC] will be able to keep its market share, but we won't see much pick-up."

HTC's stock has fallen 44 per cent since the start of the year.