HTC has embraced Android and - propelled by the success of the platform and excellent brand recognition - it posted another very strong quarter. After-tax profits nearly tripled on the background of growing numbers of shipped handsets.
The exact numbers show that HTC's profits amounted to $517 million, while the operating margin was as healthy as ever at 15.8%. At the same time, the company managed to ship 9.7 million handsets, a 192% on the year and 6% quarterly increase. One of the key factors, average selling price, slipped slightly to $359, but is still one of the highest in the industry.
But what's behind the company's success? We can't agree more with what HTC itself points out in its statement: “HTC’s strong brand recognition and product innovation drive better-than-expected 1Q momentum.” While some might blame the Taiwanese for the largely identical designs, they have managed to create an easily-recognizable lineup of products. One that says HTC from the get-go with its premium and uniform solid design and HTC Sense UI.
It might be true that we haven't seen anything groundbreakingly new from the company, but little tweaks go a long way. And that's what the company has mastered with its slow, but steady updates to Sense UI for example, adding practical innovation like weather updates straight from the lock screen, or silencing ring tone volume when you pick up the handset, rather than reaching for the stars in Sense 3.0.
Actually, Sense UI and the upcoming
movie rental service HTC Watch are in the core of the
company's strategy for the future. The HTC Sensation will be the
first promoting those features along with the next generation of
dual-core processors. But while that's all a part of the strategy for
the second quarter, the manufacturer has managed to make a nice
transition with models like the HTC Incredible S, Desire S and Wildfire S.