HTC reports $625 million profit in Q3, rising smartphone demand
Despite legal spats with Apple and slowing world economy which allegedly forced it to reduce its orders for Q4, HTC reported steady final results from its fiscal third quarter. Handset shipments almost doubled compared to the same quarter in 2010, and shot up to 13.2 million units, 9% more than in Q2. Revenue reached $4.54 billion, 79% more than Q3 lat year.
HTC even managed to score a small increase in the average selling price of its smartphones, compared to last year's quarter, which went up to $344. The record sales and higher ASP brought on $625 million of profits - operating profit was almost 15% on 28% of gross. That number, however, was bested by Samsung for the first time, which became the second most profitable company from its mobile division after Apple in terms of margins in Q3.
Now for the less dry stuff. HTC claims that it is the mobile company that ships most 4G phones than anyone else, and mentioned that an LTE upgrade cycle is due in 2012, both in the US, and in other advanced LTE markets like South Korea and Japan. Thunderbolt S anyone? What caught our attention in the press release is also the fact that China exploded 9 times as far as shipped units goes, marked by the huge success of entry-level Android handsets with sharp design like the HTC Wildfire S.
The company is so certain in its future growth, despite the sagging economy, that it has completed its new factory in Taoyuan, which has the capacity to reach 40 million units per year. HTC is obviously betting on increasing smartphone demand, and when it materializes, the capacity will be there to meet it. For Q4 the company predicts a slightly smaller number of units sold and operating margins. Recently HTC became Taiwan's most valuable global brand.
source: HTC (PDF)