updated 03:25 pm EDT, Wed October 7, 2009
HTC barely meets financial guidance
Smartphone maker HTC late Tuesday reported unexpectedly poor fiscal performance for its summer quarter. The company's profit dropped nearly 18 percent compared to a year ago and reached the equivalent of $179 million Its total revenue also fell more than 10 percent to about $1.06 billion and hit the exact minimum of HTC's already lowered guidance for the period.
No explanation has been given by HTC for the drop. Analysts however believe the company had been reacting to stiff competition and had to both spend extra on marketing its phones as well as keep prices lower than usual, hurting its profit margins.
HTC has struggled to gain share this year and has seen the gap widen between itself and Apple. Its phone lineup has steadily shifted towards Android, but the majority of its devices continue to focus on Windows Mobile and have suffered as buyers have shied away from the aging OS. Unofficially, it's believed HTC may cut the number of Windows Mobile devices to less than half of its 2010 production to focus on the less expensive and more touchscreen-friendly Google platform.