HTC, the Taiwanese handset-maker known for its Windows Mobile and Android devices, said fourth-quarter revenues failed to meet expectations as retailers adjusted their inventory levels in December. Q4 revenues totaled T$47.4 billion (US$1.4 billion), increasing 21.4 percent over the previous year, but missed earlier guidance of NT$48 billion, reports cellular-news.com. In Q4, the company introduced its first Google (NSDQ: GOOG) Android phone, but based on T-Mobile USA’s results, it is likely sales were strong, but not amazing. In December, HTC reported that the T-Mobile G1 sales had been better than its one million unit prediction, though it did not give a specific figure. HTC expects to benefit from the trend of consumers upgrading to smartphones.
Full Year 2008: Reuters reported that for the full year the company reported a 2008 full-year profit of T$28.7 billion ($854 million), which was lower than in 2007, but attributable to a regulatory change requiring companies to expense employee bonuses.
Outlook: In Q1, the company will continue to struggle with inventory levels, but momentum could pick up by Q2 based on new products. A few new products are expected to be unveiled at Mobile World Congress on Feb. 16 in Barcelona. HTC expects Q1 revenues to total about T$33 billion ($980 million), which will be down sequentially, but slightly higher than the T$32.7 billion a year before.
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