HTC posts revenue jump for first time in years

6 Jan 2015122 Views

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

The HTC One smartphone

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

Mid-range handset sales have seen smartphone maker HTC post its first quarterly revenue growth in more than three years.

The high-end smartphone sector is ultra competitive, with Samsung and Apple dominating the scene, so HTC’s performance in the lower tiers is incredibly important to its balance sheet.

The Taoyuan, Taiwan-based company appears to have found a decent balance, with sales of NT$47.9bn up NT$5bn on the same period a year earlier. Net income totalled NT$470m, while operating profit of around NT$180m beat the predictions of analysts, who expected significant losses, according to Bloomberg.

It’s not all rosy at HTC, with overall figures in 2014 showing losses, however, gaining a foothold in the mid-tier of smart-device sales – the company’s new tablet and phones aimed at developing markets, in particular – is a significant boon to its operations.

The entire smart-device industry is a difficult market to operate in. Apple and Samsung dominate at one end and upstarts such as Xiaomi blaze a trail at the other.

HTC has been busy diversifying its range in 2014, and announced a return to partnership with internet search giant Google to produce the Nexus 9 back in September.

Then, in October, HTC launched a new smartphone for selfie fanatics called the Desire Eye, that comes with two 13-megapixel cameras front and back. It also revealed the HTC RE camera that will compete with GoPro.

Last year, it also started selling its own-brand software to other Android devices in a bid to boost revenues. Clearly some, or all, of these decisions have started to pay off.

Gordon Hunt is senior communications and content executive at NDRC. He previously worked as a journalist with Silicon Republic.

editorial@siliconrepublic.com