HTC 1Q net down 70%; lowest since 2006

--HTC's first quarter net profit falls 70% to NT$4.46 billion, largely in line with expectations --HTC posts its lowest quarterly net profit since 2006 --Analysts say market concerns over intensifying competition remain an overhang --HTC's second-quarter business guidance in late April will be closely watched (Adds background in the 2nd paragraph and analysts' comments on outlook in 5th-8th paragraph) TAIPEI -(MarketWatch)- HTC Corp. Friday posted its lowest quarterly profit since it started selling cell phones under its own brand, as intense competition and a slowing global economy sliced off 70% of its unaudited first-quarter net profit. The Taiwan handset maker, which switched from being a behind-the-scenes contract maker of cell phones to launching its own brand of mobile devices in 2006, initially grabbed market share in the U.S. and Europe through its early adoption of Google Inc.'s Android platform for mobile phones. But it is now facing challenges in those key markets from rivals Samsung Electronics Co., Apple Inc., Nokia Corp. and Motorola Mobility Holdings Inc., all of which have quickly expanded their premium smartphone offerings. The Taoyuan-based company, which was founded in 1997, said in a statement that its unaudited net profit for the three months ended March 31 fell to NT$4.46 billion (US$151 million) from NT$14.83 billion a year earlier. Its first-quarter revenue dropped 35% to NT$67.79 billion from NT$104.16 billion a year earlier, in line with its previous revenue guidance of NT$65 billion-NT$70 billion. Analysts said the first-quarter results were largely in line with expectations but market concerns over intensifying competition from Apple, Samsung and the rise of Chinese brands remain an overhang. They said the demand for HTC's smartphones is uncertain, and investors will be watching the company's guidance for second quarter business due later this month. "While HTC's operation is likely to turn around in the second quarter with its launch of new "One" series smartphones, there are uncertainties over its shipment momentum from the third quarter as Samsung and Apple are expected to launch new smartphones," said Bonnie Chang, analyst at Yuanta Securities. Credit Suisse also said in the note that it has concerns over HTC's full-year operating profit margin as the company is likely to increase its marketing expenses to expand its distribution channels in China, the world's largest mobile market by subscribers.