HTC blames iPhone 4S for recent profit drop

HTC is still stinging from a less than impressive quarterly earnings that's partially the result of a successful iPhone 4S campaign by Apple, according to an AP report. The Taiwanese handset manufacturer saw a 70 percent drop in profit and a 35 percent decrease in revenue year over year. Though it expects to do better in the current quarter with its flagship HTC One series, CEO Peter Chou says its biggest challenge is the iPhone 4S, which dominates on the US carriers.

Thus far, US carriers have sold or activated 7.5 million iPhones in the just ending quarter. Verizon Wireless reported that it sold 3.2 million iPhones, while AT&T activated 4.3 million. Sprint has yet to report its earnings, but the carrier has said in the past that iPhone sales are strong.