Sometime in December HTC did warn investors that there would be a big fall in their profits for Quarter 4 of 2011. Q4 2011 generated T$11.02 billion ($366m) in net earnings, which marks a significant drop from the T$14.8b ($492m) the company pulled in during the same period a year earlier.

Initially we all thought this was because of the disastrous November that HTC had, but December was just as bad. Compared with 2010, HTC saw a 20.3% drop in revenue. HTC isn’t back tracking just yet, they aren’t in the hole as deep as some companies like RIM, HTC is still a big company with a nice portfolio of competitive products in both Android and Windows Mobile phone markets. HTC kind of slowed down their launching of new devices in Q4 as far as Android devices go, we don’t really pay attention to Windows Phones as much as Android phones.

Now what HTC needs to do is stabilize their profits and keep pushing out great new phones and tablets – perhaps get rid of HTC Sense – so they don’t fall any further.

It’s important to point out that these numbers are unaudited, so they could change in the foreseeable future. But for the world’s number four phone manufacturer to see a loss like this is still surprising. HTC still lacking to compete with the top two manufacturers Apple, and Samsung.

Are you surprised by HTC’s 2.5% drop in Q4 of 2011? Let us know in the comments.

Read comments