Taiwan’s number one brand name supplier of smartphones recorded record revenue for the third consecutive month. Thanks to revenue of £963 million for June, HTC was able to beat second quarter projections and calm fears that the company’s revenue would decline in 2011. Can anything stop HTC’s record revenues?
If this was an awards show and HTC was standing at the podium giving its acceptance speech for best second quarter revenues, the company would first like to thank Android. Way back in 2008 when Google introduced Android, HTC made the decision to welcome the platform with open arms. It’s that move that took the Taiwan manufacturer from just a company building smartphones to a household name.
To put HTC’s success into perspective, we must take a quick look back at 2008. Total yearly revenues for 2008 were NT$ 12 billion, up 52 percent from 2007’s NT$ 7.9 billion. In just the second quarter of 2011, HTC recorded NT$ 124.3 billion. That’s more than 10 times the company’s entire 2008 revenues.
The tremendous growth over the past three years seems like a script of a Hollywood blockbuster. Unfortunately the realist inside of us is quick to point out, “all good things must come to an end”. The question is whether we’ll see that end in 2011? The numbers show June revenue was 10.9 percent higher than May and second quarter revenue represented a 19.43 increase over the first quarter of the year. Looking at the first half of 2011, HTC total revenue has spiked 131 percent year on year.
In order to continue a 10 percent monthly growth over the next sixth months the HTC Sensation and EVO 3D will need to live up to their titles as company flagship handsets. These sales, when combined with Windows Phone and mid and low-range Android sales, should deliver the necessary growth to continue record revenues throughout 2011. There’s no guarantees when it comes to device sales, but a diverse product portfolio of smartphones and a tablet (soon to be two?) should do the trick.
