HTC Q1 estimates down due to 'product transition'

New products such as HTC Ville expected to normalise profit

HTC has taken analysts by suprise after submitting forecasts that don't altogether paint the sunniest picture for the smartphone maker

HTC's Q1 estimates have actually undercut those made by analysts with the company predicting sales of around £1.2bn, down from Q4 which had sales of around £2.1bn.

The company has put the blame down to what it is calling a time of 'product transition' which will see revenue and profits then normalise.

The smartphone maker will be resting a lot of its hopes on the upcoming lineup of smartphones that will no doubt be making their appearance at the Mobile World Congress 2012.

Rumoured to be arriving are the HTC Ville, HTC's thinnest phone yet and packing Ice Cream Sandwich. Alongside that will be what is being called the HTC Zeta, the company's first Quad-core handset running what is believed to be the Nvidia Tegra 3 processor.

BusinessWeek spoke to their Chief Financial Officer Winston Yung and discovered that 'product transition' isn't the only reason the company will potentially suffer this quarter revealing that “LTE handsets also didn’t meet our expectations.”

HTC has embraced 4G technology with the smartphone manufacturer making a large range of smartphones including most recently the HTC Titan 2, a LTE replacement for the original Titan.