HTC sees large fall in profits

Smartphone manufacturer HTC has reported a 79% drop in profits. This is the third quarter of reported losses. The Taiwanese phone maker is losing ground to Samsung and Apple.

International Business Times reports that the net profit published by HTC for the third quarter of 2012 was NT$3.9 billion ($133 million), a figure down from the NT$18.68 billion recorded a year earlier. The announcement saw a 7% decline in the firm's share value on the Taiwan Stock Exchange, with shares valued at NT$267. HTC's stock value has fallen 44% since the start of 2012. The HTC data contrasts sharply with equivalent figures from rival Samsung, which is doing very well through sales of its Galaxy smartphones. Taoyuan-based company was a pioneer of the Android smartphone. However, it has fallen behind both Samsung and Apple in terms of market share. Speaking about the figures, Yuanta Securities analyst Dennis Chan told the Economic Times: "I expect HTC's margin was down 2 basis points compared to Q2 due to a change of product mix. HTC was cutting prices and its low-end phones were selling better." The figures are, however, worse than anticipated. HTC hopes to make up some of its lost market with two new Windows based smartphones: the 8X and 8S, as the Digital Journal reported last month.