HTC forecast a sharp fall in sales and margins in the first quarter, as the company works on revamping its product portfolio. The smartphone maker announced that its January revenues fell 52.55 percent from a year earlier to TWD 16.615 billion. Total first-quarter revenues for the three months to March are forecast at TWD 65-70 billion, down from TWD 101.4 billion in Q4. Amid expected pressure on prices, the gross margin is expected to drop to around 25 percent in Q1, from 27.1 percent in Q4, and the operating margin will fall to an estimated 7.5 percent from 12.7 percent in the previous quarter. HTC said these are "short-term difficulties", and margins should improve when the product transition is completed. The forecast came alongside a brief presentation of fourth-quarter results, with no details on unit shipments or prices. The company confirmed Q4 revenues were down 2.5 percent from a year earlier, and net profit dropped 26 percent to TWD 10.9 billion.
