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Monday, October 08, 2012
HTC Posts Record Profit Drop Amid Competition


HTC Corp posted a record 79 percent drop in quarterly profit as competition from Samsung Electronics and Apple drove down sales of the Taiwanese company?s devices.

Third-quarter net income slumped to NT$3.9 billion ($133 million), the Taiwan-based company said in a statement today. Revenue fell 48 percent to NT$70.2 billion. The company on Aug. 3 forecast revenue of NT$70 billion to NT$80 billion. Operating income declined 76 percent to NT$4.9 billion, according to HTC.

HTC hoped that its presence at Chinese market would help the company's revenue, but it seems that the cmpany has faces stronger competition in China from unbranded (white box) phones.

Samsung last week reported record third-quarter operating profit, buoyed by continued gains by its Galaxy phones and tablets. The S. Korean company has sold more than 20 million units in the 100 days after its debut.

Apple sold 5 million units of its iPhone 5 in the first weekend after sales commenced in nine countries on Sept. 21.


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