Shares of smartphone maker HTC plummeted on the Taiwan Stock Exchange after the company reported a sharp drop in its profits for the first quarter of 2012.Its shares dipped as much as 6.8% to 545 New Taiwan dollars.
The firm said net profit for the first three months of year fell 70% from a year earlier to £95 million (NT$4.46 billion).
The numbers come as the firm faces increasing competition from rivals such as Samsung and Apple.
HTC also reported a 35% drop in revenue for the period. Analysts said the weak results had raised concerns about the impact of increasing competition on the firm’s future growth.
HTC, which used to be a contract electronics manufacturer, started making phones under its own brand just five years ago.
The firm made rapid progress and was one of the early market leaders in the Android sector. It gained valuable share in key markets such as the US, and at one time was the world’s third-largest mobile phone maker.
However, the company failed to hold on to its dominant position and has been losing ground to other Android phone makers, as well as Apple’s iPhone.
The firm is launching a new series of phones, dubbed HTC One, in a bid to regain its market share.
Analysts said that even though the company had suffered a setback, it had a good chance to bounce back.