HTC posted record sales in the second quarter thanks to the popularity of Android phones and a surge of demand from Asia, as more companies shift focus to the Pacific to increase market share.
The Taiwanese handset maker shipped about 11 million smartphones in the second quarter, more than double the total from a year earlier. HTC also nearly doubled sales in one year, for a total of revenue of $4.3 billion.
HTC chief financial officer Winston Yung said the company gained ground in both the U.S. and Asian markets, with the Pacific market showing the most growth. The company believes both markets will continue to provide strong sales through the remainder of 2011.
HTC’s success is due in part to Google’s Android mobile operating system gaining popularity in 2010. The company launched the Nexus One, the first-ever Android-based device in January 2010, which sparked a strong of smartphone successes like the Evo and Droid Incredible and made HTC become a household name.
More recently, the company capitalized on popular devices like the Thunderbolt on Verizon, Inspire 4G on AT&T and Sensation 4G on T-Mobile.
Handset makers across the globe have emphasized the importance of the Asian market, which has the largest population of cell phone users in the world, as a key to success.
China, currently the world’s largest mobile market, is expected to continue growing. Over the next five years, analysts believe Asia’s mobile market could expand by 40 percent, totaling nearly one billion devices in the region.
Apple last week reportedly saw an increase of more than 720 percent in the Asia-Pacific market over the last five years, as well as a 3,000 percent increase in profits, according to financial blog Motley Fool. Apple had over $8 billion in sales in the region in 2010, $5 billion of which came from China alone.
Last month, Nokia announced it will begin offering low-end handsets in Asia to help fight against Apple’s iPhone and Google’s Android, as well as to create a foothold in the world’s largest mobile market. Nokia’s devices have been popular in North America and Europe, but sales have sub-par in Asia where consumers traditionally spend less money on smartphones.
HTC seemingly understands the importance of the Asian market, and has shifted its focus accordingly. Other companies see the booming profits and market share available in countries like China and want a piece of it. Companies will continue to try and gain popularity in China as the market continues to expand.
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