HTC Gets a Lesson in Market Volatility, Profits Drop 70 Per Cent

HTC reported a 70 per cent drop in profit during the first quarter, blaming a "rebuilding period" and competition from Apple for the company's ongoing reversal of fortunes.

The Taiwanese device maker banked $151.6m in net profit on $2.3bn in revenue. Revenue was down 35 per cent from the same period a year ago, but the company is projected a rebound of sorts with its forthcoming HTC One series of smartphones.

HTC CEO Peter Chou says the company is particularly challenged by Apple's iPhone 4S, which is driving the majority of purchases from US operators. With sales and revenues both in decline, the company no longer releases smartphone sales figures.

“The last two quarters were a rebuilding period for HTC,” says Chou. “We focused on creating and launching our next family of hero products, the HTC One, while continuing to grow our brand awareness and preference globally. The market response to the One has been very positive and—combined with regionally focused devices—we believe it will take HTC into its next phase of growth.”