HTC released its first quarter 2012 earnings and they don't look good. Revenue fell 34.9 percent year-over-year to US$2.29 billion and net profit collapsed by 69.9 percent to $151.5 million due to heavy competition in the high-end smartphone market from Apple's iPhone 4S.
The continued drop was mainly due to competition from iPhone 4S in the US market, according to HTC CEO Peter Chou. HTC will launch LTE- and HSPA+-enabled One series smartphones through cooperation with AT&T and T-Mobile as well as an LTE-enabled EVO in partnership with Sprint Nextel in the US market in the second quarter of 2012, aiming to regain its market status, Chou pointed out. However, it is impossible for HTC to resume a dominant market share as in the past in the US market, Chou indicated. In addition, the US may not be the largest single market for HTC beginning 2012, Chou said.
Despite frustration in the US market, HTC has been faring quite well in Europe and Asia, especially the China market, and expects continued growth in business there, Chou noted.