Disappointing sales of HTC's new high-end smartphone products saw profits plunge at the mobile phone maker in the last quarter of 2011, according to the latest figures from the firm.

The Taiwan based company made a profit of €280 million in the three months to December. This represented a fall of 26 percent.

The firm also warned that its revenues, which came in at €2.59 billion during the final quarter of last year, could fall by almost a third in the current quarter, to a total of €1.8 billion.

The poor financial results were blamed on a number of factors, including the weakness of the world economy which has been hit by uncertainty in recent months.

Rival products from technology firms including South Korea based Samsung and Apple also hit HTC's sales as it failed to cash in on consumer demand for smartphones.