HTC reports upbeat 2010 results, to double Shanghai capacity
It is that sweet time of the year when figures start raining in as companies announce their results for the last quarter closing the past year and looking at the bright future ahead. By no means it is bright for everyone, but HTC's healthy profit and revenue growth show an optimistic outlook for a company that was rarely in the highlights just two years ago.
The company's own Peter Chou announced that the company shipped more than twice as much phones in 2010 with a total of 24.6 million units, up from 11.7 million for 2009. HTC saw net profits surge 75% to $1.23 billion (NT$ 39.5 billion) on the year, while revenue skyrocketed 93% to $9.54 billion (NT$278.8) from last year's $4.96 billion (NT$144.5).
But this news is hardly the limit for the Taiwanese giant. The “quietly brilliant” company announced that it will double capacity in its core Shanghai facilities and a new plant in Taiwan is also in the plans. Outsourcing production was also hinted. The first quarter of next year is equally bright as 4G will keep on pushing HTC and demand remains “visible and solid.”
In the fourth quarter of 2010 the Taiwanese company shipped a record 9.1 million handsets to reach its 24.6 million yearly result. The average price took an upward turn to $364 after it reached a plateau at around $340 in the first three quarters of the year.
The upbeat financial results came on the background of 50% global brand awareness, which HTC wants to capitalize on with optimized organization. Its main goals for next year are to strengthen its brand value and more interestingly “to build brand preference and emotional connection to HTC.”
North America accounted for more than half of HTC's revenue and this is no surprise with the massive 4G launch in the States. HTC managed to catch the industry first titles for 4G phones for both Sprint (HTC EVO 4G) and T-Mobile (T-Mobile myTouch 4G). But it has 2011 secured as well as it is expected that HTC will cater the first 4G handsets for the U.S. biggest carriers – Verizon (HTC ThunderBolt) and AT&T (HTC Inspire 4G).
In its Q&A session, the company pointed out the importance of the growing Asian market, especially after the wider launch of 3G technologies in many Asian countries. The Desire lineup along with the HTC Wildfire fueled Asian/European growth for the phone manufacturer.
source: PR via Unwired View (PDF)