After forecasting profits of nearly £4.5 billion for Q4 in 2009, HTC was only able to recoup just under £3.5 billion after being hit by stiff competition from rivals and a drop in the price of smartphones.
In the equivalent period in 2008 HTC took over £5 billion, but it was unable to repeat this success in 2009. A spokesperson for an investment firm suggested that profit margins were being squeezed by successful smartphones produced by HTC's rivals, although he admitted that there was still room for growth in the current market.
HTC will hold a conference at the end of January in order to officially publish its performance results and set targets for the next 12 months.
The expansion of the smartphone market is expected to continue this year, with 20 per cent growth seeing it outstrip the rate at which the home computer market is growing.
A boost in HTC sales is expected in 2010 as it will be producing the Nexus One mobile phone for Google, although with many manufacturers more usually associated with computing entering the smartphone market this year it could be even harder for HTC to gain further market share.
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