HTC Q4 2011 net income dropped 26% to $364 million compared to the same quarter of 2010. Analysts are expecting that profits for HTC will continue to fall even further this quarter; HTC cut its outlook for revenue last quarter. Part of the blame for the declining profits is that HTCs smartphones are being overlooked in the high-end by consumers.

HTC reported its Q3 financials in October 2011, and posted up profits of $625 million. HTC is expected to be launching some new Tegra quad-core devices soon after CES, perhaps these devices will be able to help HTC turn around.

Consumers are instead opting for the slick line of Samsung Galaxy devices or the iPhone. Another reason for the falling profits is a softening global economy according to Bloomberg. Shipments of HTC devices dropped to 10 million units in Q4 2011, and that number is expected to fall to 8.5 million units this quarter.

[via Bloomberg and GoAndroid]