HTC Corp, the world No5 maker smartphone shipments, it is widely expected to launch four models later this month at the Mobile World Congress in Barcelona, including an ultra-slim type, currently code-named HTC Villas, and one that uses advanced Quad-core chips.
The challenge, say analysts, is to make these devices stand out in an increasingly competitive market.
"It can be turned around," said Melissa Chau, Singapore-based research manager at IDC. "But the problem remains the same: How are they going to differentiate?"
The size of the problem is becoming clearer. Before the Barcelona conference, analysts expect HTC to publish a 11.6 percent decline in revenues this quarter than last, after a worse than expected decline in the fourth quarter, the first decline in two years.
The company will announce first quarter guidance to about 0800 GMT on Monday.
"We think the company could ship off to 1 st quarter and driving sales due to sluggish demand for its old products, and as most of their new projects will be launched in only 1 quarter late," said BNP Paribas analyst Laura Chen in a relationship.
He noted aggressive price reductions, lower economies of scale and inventory digestion likely as pressure sales and margins this quarter. BNP HTC expects sales to gain momentum from the end of the first quarter of 2012 and more than 30 per cent growth in sales in the first half of the year. But it will not stop the year-over-year sales and profits remains in decline.
Dropped to fifth place
HTC has dropped to fifth place in the world rankings in the fourth quarter, according to research firm IHS tech, down one from the previous quarter, as its coded models to compete with Apple Inc's iconic iPhone and the Galaxy range Samsung Electronics' .
The Taiwanese manufacturer previous contract had a fabulous tour in 2010 and early 2011, when its shares more than tripled in the 14 months up to April 2011 and sales have increased fourfold over 1-1/2 years as consumers snapped up its mobile innovation with their distinctive large clock numbers.
At that time, was synonymous with HTC's Android operating system: in fact, Google HTC has chosen to build its flagship Nexus One phone to show the capabilities of Android in early 2010.
But an equally rapid fall from grace has seen its shares become the worst performer among global companies of smartphones last year, down 42 percent. Analysts questioned his lack of new projects in the market volatile and rapidly changing smartphone.
HTC has found it difficult to differentiate new entrants have entered the Android market, IDC says Chau. The software and hardware have increasingly become commodities, forcing HTC to hunt for new ways to stand out.
"They were distinguished for their user interface, and that worked early," he said. "But users can now buy a phone based on that?"
Meanwhile Samsung ambitiously created new high-end segment, with models such as its big-screen notes Galaxy, down to Android phones that cost less than $ 200, as well as leverage marketing and retail networks to promote its products.
AMBITIOUS PLANS
HTC has ambitious plans for the year. He announced four new smartphones at Mobile World Congress on Feb 26, according to Barclays Capital. The HTC Villas will feature a 4.3-inch AMOLED display and a 8 megapixel camera and runs on the newest version of Android 4.0.
Other patterns reported include a high-end design code-named The Edge that uses a quad-core CPU, as well as a pair of mid-range smartphone. Design and improved performance and a lack of new models coming from Samsung and Apple will provide some margin in the quarter to compensate for the lost market share HTC, analysts said.
But challenges remain. Slowing growth in developed markets, a wider distribution of Apple iPhone 4S, especially in the U.S., and a technological gap with the leaders of other narrowing of the field are all HTC Android will face challenges in 2012, Morgan Stanley said in a note search.
HTC shares have risen 15 percent since early this year, above the main TAIEX share index has increased nine percent, as investors see value in society and consider his actions oversold in recent weeks.
According to 19 analysts polled by Thomson Reuters I / B / E / S, HTC would see $ 89.64 billion (3.04 billion) in revenues this quarter T, T down from $ 101.42 billion in the fourth quarter.
Analysts also expect a 15-20 percent reduction in deliveries in the quarter.
