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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

Max

July 6, 2010, 8:12 pm

Wow, from being a takeover target for SE or Nokia they are competing with at least SE and probably Nokia too if they start taking dumbphones seriously.





I want to get an HTC, but also want to wait for Android 3.0. Difficult times ahead for me I guess...

Malderon

July 6, 2010, 8:39 pm

Ive had HTC phones ever since the days where they were only carrier branded similar to Huwaei and some others now. My first was the original Orange SPV which I think was one of the pioneers of the blend of PDA and phone running Windows Smartphone edition, which was seperate to Pocket PC. I knew this was the future, wish I'dve had the money to buy HTC shares. Once they got their brand name after and Apple broke Smartphones to the mainstream, they were perfectly positioned for rapid expansion.

HarryGlass

July 6, 2010, 10:09 pm

@Max: Patience patience, you'll only regret any purchase if you don't wait til Oct/Sept for the first Android 3.0 phones.





Amazing results by HTC, shows how Android is starting to take over. Really Nokia should start making some Android phones, have a separate division if they want (like Vertu) but just to get a piece of the Android pie (as Sony Ericsson are doing). Even if Meego & Symbian^3 (and 4) take off Android will still be there. Eggs in as many baskets as possible i'd say.





Wish i'd bought HTC and Apple shares years ago...

rav

July 6, 2010, 11:35 pm

@Max


Even if Android 3.0 is released in October don't expect to see a HTC based on it till next year.





Good to see HTC doing well. They do make great phones and their software is pretty nifty too.

Hamish Campbell

July 7, 2010, 1:09 pm

@ravmania, you might want to pitch that to them.





"HTC, pretty nifty."

Peter 20

July 7, 2010, 5:13 pm

I think other manufacturers could really learn a thing or two from HTC. One thing they definitely got right is that their able to produce many different high end models of phones within a reasonably short amount of time. Where for other brands it takes almost a year from a single product announcement to it's release, HTC has was able to push out a number of different devices all within a few months. Even if a phone maker comes out with a grate hardware and design it won't mean squat if customers have to wait a year for it's release because by that time it will be old news. And that's where HTCs success lies, I don't even think it's because of their phones cuz comparing them to Samsung, Motorola or even Apple and you won't see anything that special.

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