Just how lucrative is the G1 handset proving to be for manufacturer HTC? Well, the company just reported a drop in both profits and revenues for the first quarter of this year.

Specifically, HTC reported revenues of $954 million for Q1, down 3.4 per cent from the same period a year ago. That means it missed its target of $997 million for the quarter, which it predicted in February.

That means the company reported a net profit of $148 million for Q1, down 30 per cent year-on-year.

The company says that a delay in handset shipments was to blame for the poorer-than-expected results, with several products pushed back to April.

HTC will be hoping for a boost when its HTC Magic Android handset ships with Vodafone, among other new products.