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HTC Reveals Record Profits, Shows Quality Is King

Gordon Kelly

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We don't often write about financial results these days (our stats show you find slitting your wrists more enjoyable), but we're making an exception given the larger ramifications of this one…

HTC is kicking serious economic ass. The smartphone giant has just announced Q2 figures that show it has increased year-on-year profits by a whopping 32.8 per cent to £176m. Furthermore revenue rocketed 58.5 per cent to £1.2bn from £781m 12 months ago – a company record which easily exceeds the £1bn estimates it made in April.

Unsurprisingly HTC claims strong sales were behind this success and you'd have to say its decision to move away from Windows Mobile (despite royalty payments) to Google Android is a huge factor behind that. Also key is HTC has managed to do what a lot of other much larger mobile phone makers have so far failed to achieve: create consistently appealing, stylish handsets which use a custom UI that doesn't completely undermine the value of Android itself.

Prime examples of this are the HTC Desire and Legend while it was also behind the slow burning success that is the Nexus One (even if Google has no plans for a Nexus Two). With the Incredible on the horizon too this run doesn't look like coming to an end any time soon.

A few years ago I suggested the likes of Sony Ericsson, Motorola and Nokia should consider buying HTC to rejuvenate their smartphone businesses. In a few years' time it may be HTC which can buy them…

Source: The Wall Street Journal

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