Based on a recent report published on Reuters, the Taiwan smartphone maker, HTC Corp announced lagging Q1 revenue. According to analysts, the company will continue to face financial problems in the following quarters as CEOs will have to prove that HTC still retains its innovative touch.
HTC announced on Monday that its revenue dropped 36 percent in the first quarter of the year. The smartphone manufacturer reported T$101.42 billion gains in the previous three months, but during the first quarter their revenue dropped to T$65-70 billion. Despite these deluding numbers, HTC claims the problems will not last for too long and they will soon begin to make profit again.
The Barcelona Mobile World Congress which will be held later this month is the place that the Taiwan-based company has chosen for the launching of their latest four models. HTC Ville is one of the much-awaited models that will be introduced at the Congress together with a device that incorporates advanced quad-core chips.
Launching their latest products is not the greatest challenge that HTC will have to overcome, but to make its devices stand out in an increasingly competitive market. Melissa Chau, Singapore-based research manager for IDC, told the press that the revenue issue may be solved, but the company will still have to differentiate its products.
The software and the hardware that are used by the HTC Corp are no longer new on the market; therefore, the Taiwan manufacturer will have to find new methods of competing against Apple’s iPhone and Samsung. Samsung is one of HTC’s strongest rivals because it has created both high and low end models.
2010 and 2011 were the best years of the HTC company because its shares tripled during this time of the year. The last months of 2011 brought a 42 percent decrease in the company’s stocks. Judging by the latest numbers, it looks like HTC is slowly recovering. Share prices have climbed 15 percent since the beginning of the year because investors consider that the company is still valuable.