HTC aims to improve on its past smartphones with better 4G products this year

HTC expects to see a temporary decline in Q1 revenue as new products replace older models

After facing a disappointing financial fourth quarter, HTC has reviewed its under-performing products from last year, making changes in design and components for its future smartphones, according to its CFO Winston Yung.

"With our new product cycle we should regain our business momentum," Yung said during a conference call with investors on Monday.

The Taiwanese smartphone vendor ended 2011 with fourth-quarter profit declining by 26 percent year-over-year. During that quarter, HTC faced strong competition in the U.S. from Apple's iPhone and products from Samsung, Yung said.

HTC expects a decline in revenue for this year's first quarter as it transitions into its new product cycle. Yung said first-quarter revenue will range from NT$65 billion (US$2.2 billion) to NT$70 billion. This would be down from the NT$104.1 billion in revenue generated for the same period last year.

"Q1 is not normal. We expect this to be a transition," he said. Yung declined to discuss future products, or offer shipment dates, but said revenues will return to normal in the second quarter.

As the company works to improve its products, Yung said consumers will no longer have to sacrifice battery life or design for fast connection speeds when buying a 4G LTE phone.

"In 2012, these problems will be resolved and see significant improvement. So using these LTE phones won't mean having a compromise," he said, noting that previous 4G phones were not as attractive to consumers.

Although HTC faced a decline in profits for the fourth quarter, the company has seen its business grow quickly in China, Yung said. At the end of last year, the company had expanded to establish 2,000 retail outlets in the country, he added.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?