Taiwanese smartphone manufacturer HTC has reported a 40% decline in its revenues to NT$60bn ($2.03bn) for the fourth quarter of 2012, compared to NT$101bn ($3.42bn) it reported during the same period in 2011, amid stiff competition from rival smartphone makers Samsung and Apple.
The company's revenues were T$70.2bn($2.4bn) in the third quarter of 2012.
For the fourth quarter of 2012, the company's net profit plunged 91% to NT$1bn ($34.4m), compared to NT$10.94bn ($370m) for the corresponding period last year.
HTC said its gross margin for the quarter was at 23%, while operating margin was at 1%.
For the first quarter of 2013, the company expects revenue to be in the range of NT$50-60bn ($1.69bn-$2.03bn) and gross margin of about 21 to 23%.
HTC CEO Peter Chou said that the company continues to focus on innovation. "Our teams are delivering beautifully designed phones, containing the newest technological advancements."
"Outstanding products, paired with improvements in our marketing execution and overall readiness give us reason to feel optimistic about the progress we will make in 2013," Chou said.
In November 2012, HTC and Apple settled their patent disputes, ending a conflict that started in March 2010.
Both the firms have also signed a 10-year licensing agreement that offers rights to existing and future patents.