HTC expects to see massive profit drop ahead of M7 launch

A profit drop of up to 90% can be expected before M7 launch, says HTC.

@CharlesJGantt
Published Mon, Feb 4 2013 11:01 AM CST   |   Updated Tue, Nov 3 2020 12:24 PM CST

Things seem to be looking worse every day for the Taiwan based smartphone manufacturer HTC. The bad news this time is from HTC CEO Peter Chou himself. Chou said that profits for its first quarter will plummet much lower than market analysts predicted.

HTC expects to see massive profit drop ahead of M7 launch | TweakTown.com

HTC is expected to announce that its profits have dropped 90% in the last three months and is expected to drop another 17% by the time the quarter ends in March. HTC says first quarter revenue will be in the $2 billion range, which is below market estimates.

Chou blamed the decline in sales on a lack of marketing combined with strong competition. "Our competitors were too strong and very resourceful, pouring in lots of money into marketing," he told the Wall Street Journal. "We haven't done enough on the marketing front." HTC is set to unveil its M7 handset at an event ahead of Mobile World Congress, and HTC is hoping it could be a change in recent tides for the company.

NEWS SOURCE:techradar.com

A web developer by day, Charles comes to TweakTown after a short break from the Tech Journalism world. Formerly the Editor in Chief at TheBestCaseScenario, he now writes Maker and DIY content. Charles is a self proclaimed Maker of Things and is a major supporter of the Maker movement. In his free time, Charles likes to build just about anything, with past projects ranging from custom PC cooling control systems to 3D printers. Other expensive addictions include Photography, Astronomy and Home Automation.

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