HTC has almost doubled its quarterly profits, beating analysts’ predictions, thanks to releasing new models of smartphones.
The Taiwan-based company saw its third quarter net income rise to a record NT$11.1bn (US$360m) from NT$5.7bn last year, they said in a statement.
It beat the average figure of NT$9.2bn that 16 analysts predicted.
Consolidated revenue reached NT$76bn, beating the company’s own prediction of NT$70bn, though just behind the average estimate of NT$77.6bn from nine analysts.
Analysts attribute this rise to the release of new models with the Android platform, which recently overtook BlackBerry in terms of popularity, and say that Microsoft’s new platform Windows Phone 7, will help it grow further.
“HTC will be a key beneficiary of the robust smartphone up-cycle, growing popularity of Android, and Microsoft’s strong push of WP7,” said Jeff Pu, an analyst at Fubon Financial Holding Co. in Taipei.
“HTC’s improving brand awareness and software capability will continue to support its growth momentum into 2011.”
HTC is the No 4 smartphone producer in the world, facing competition from the likes of BlackBerry, Samsung and Apple’s iPhone. Analysts believe HTC is in a good position in the market.
“Investors are comfortable with HTC’s status in the Android market,” said Steven Tseng, an analyst at RBS in Taipei.
“HTC will keep a stable position, even if it is not a leader in the sector.”