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G1 Android phone can't save HTC's profits

HTC's profits take a tumble
HTC's profits take a tumble

The economic slowdown has hit nearly all electronics companies hard, but it's always a surprise to see a company that's had a good year announce a profits slump, as HTC has just done.

The company reported a 30 per cent slide in Q1 profits compared to the same point last year, ending up with around £101 million.

However, the manufacturer has announced it believes it will be seeing double digit growth in the coming year, which is likely to be based on the success of its forthcoming Android range, including the much-vaunted HTC Magic, although this is apparently set to be slightly delayed.

Still to come

Other big handsets already announced but yet to be released include the forthcoming Touch Diamond2 and the Pro2 (perhaps the naming department at HTC decided to have a week off when these were unveiled), which have yet to figure in this year's profits.

Although barely known just five years ago, HTC has grown into one of the biggest mobile phone manufacturers in the world, and looks set to challenge the dominance of the 'Big Five', (Nokia, Samsung, LG, Sony Ericsson and Motorola) especially if the latter continues to suffer troubled times and cancelled handsets.

See the full report (PDF)