HTC sales down - downfall of HTC near?

Peter Chou, CEO of HTC, feels as if he has a license to print money - thanks to market-dominating position, his HTC, has been seeing nothing but growth. Until now. High Tech Computer Corp. announced its total revenues for February 2007 were NT$ 6,599 million, a decrease of 15.58% YoY, while total revenues from January to February 2007 were NT$ 15,005 million, a decrease of 3.36% YoY. The reasons for February 2007 lower revenues were lower sales momentum in the US region, low market visibility and decreased work hours in February (Chinese New Year). However, the 1Q07 revenue will close to the sales revenues of Q106 and the 1Q07 net profit margin before tax will maintain the same level of the same period of last year. The original source of this story is here.

Obviously this drop in sales refers to just one month, and HTC still has dominating position in Windows Mobile phones area. We also know, that at least in past (if not now) HTC was getting preferential treatment from Microsoft. Clearly HTC's future still is bright but competition is attacking: - Taiwanese manufacturers that by now had no 3G phones are releasing their phones also with 3G support, including both UMTS and HSDPA - big-brand companies like Samsung, Motorola and Treo are selling successful Windows Mobile phones not manufactured by HTC - Taiwanese manufacturers known "in the west" from very good but affordable notebooks - like Asus - are also releasing their own Windows Mobile phones both under their own brand and ready for operator branding - Apple iPhone is coming and it will totally change situation in US American market, where Windows Mobile is a dominating power in smarpthone market.