Taiwanese handset maker HTC Corporation, which is listed on the Taiwan Stock Exchange under ticker 2498, announced financial results for the fourth quarter ended December 31, 2010.
In a conference call with investors, the company's CEO Peter Chou said HTC shipped more than twice as many phones in 2010. Handset shipments totaled 24.6 million units, up from 11.7 million units in 2009. HTC saw net profits surge 75 percent to $1.23 billion on the year, while revenue jumped from last year's $4.96 billion to $9.54 billion in 2010, a huge 93 percent increase.
The fourth quarter gross margin, a measure of profitability that tracks sales minus the cost of goods sold, was 30 percent compared to 30.2 percent in the previous quarter. HTC warned that gross margin for the first quarter will narrow to 29-30 percent this quarter.
In the fourth quarter of 2010, the Taiwanese company shipped a record 9.1 million smartphones for a yearly 24.6 million result. Sales of more expensive models featuring high-definition video and fourth-generation wireless connectivity increased. During the first three quarters of the year average price reached a plateau of $340.
An average price on these models during the fourth quarter increased to $364.Just before CES 2011, Nielsen Company said that Android had 40.8 percent of the market for new smartphones bought in the US during the six months to November 2010. That is ahead of Apple iOS/iPhone and Research in Motion (RIM) BlackBerry.
HTC said during the conference call that it will double capacity in its Shanghai facilities and add a new plant in Taiwan. Outsourcing production was also hinted, but no official announcement was made during the call. The first quarter of next year is equally bright as 4G will keep on pushing HTC and demand remains visible and solid. HTC has three tablets planned for this coming year. Chou said during the conference call:
It's a new market with many competitors, and we don't want to rush into it. We hope the product we eventually unveil will be one that meets consumers' needs.
HTC is rumored to be releasing a seven-inch Scribe tablet at the Mobile World Congress conference in Barcelona this February. BSN will bring you all the latest product news from Barcelona.