HTC first quarter financial results upbeat, profit triples
HTC has embraced Android and -propelled by the success of the platform and excellent brandrecognition - it posted another very strong quarter. After-taxprofits nearly tripled on the background of growing numbers ofshipped handsets.
The exact numbers show that HTC'sprofits amounted to $517 million, while the operatingmargin was as healthy as ever at 15.8%. At the same time, thecompany managed to ship 9.7 million handsets, a 192% on theyear and 6% quarterly increase. One of the key factors, averageselling price, slipped slightly to $359, but is still one ofthe highest in the industry.
But what's behind the company'ssuccess? We can't agree more with what HTC itself points out inits statement: “HTC’s strong brandrecognition and product innovation drivebetter-than-expected 1Q momentum.” While some might blame theTaiwanese for the largely identical designs, they have managed tocreate an easily-recognizable lineup of products. One that says HTCfrom the get-go with its premium and uniform solid design and HTCSense UI.
It might be true that we haven'tseen anything groundbreakingly new from the company, but littletweaks go a long way. And that's what the company has mastered withits slow, but steady updates to Sense UI for example, adding practical innovation like weatherupdates straight from the lock screen, or silencing ring tone volumewhen you pick up the handset, rather than reaching for the stars inSense 3.0.
Actually, Sense UI and the upcomingmovie rental service HTC Watch are in the core of thecompany's strategy for the future. The HTC Sensation will be thefirst promoting those features along with the next generation ofdual-core processors. But while that's all a part of the strategy forthe second quarter, the manufacturer has managed to make a nicetransition with models like the HTC Incredible S, Desire S and Wildfire S.