HTC uses Google, downplays MS to get profit

HTC today had one of its best spring quarters in recent memory thanks to Android. The smartphone producer saw its unaudited net profit jump 33 percent compared to a year ago to the equivalent of $268 million; its pure revenue grew by 58 percent to nearly $1.9 billion. Executives didn't say how many phones had shipped, but in late April it had predicted 4.5 million phones would arrive during the spring.

Much of the rise can be credited to HTC's decision to almost exclusively produce Android phones and its role as a producer of "halo" devices that draw customers to carriers. In North America, it makes both the Droid Incredible and Evo 4G, both of which are currently the leading devices on Verizon and Sprint respectively. HTC also has significant sway over Europe as the Desire, Legend and Wildfire are popular in the region.

The Taiwan-area company has also been helped by downplaying Windows Mobile; it had several Microsoft-based devices on the market last year but now is limited almost exclusively to the HD2 and HD mini. HTC plans at least one Windows Phone 7 device but hasn't signaled any intention to return to the Microsoft-led device strategy it had in the past.

Several significant outside factors could significantly impact HTC's future in the next several months. Motorola's Droid X and later Droid 2 could oust HTC from the top spot at Verizon. Any possible iPhone for Verizon and other CDMA carriers could also quickly undermine HTC by no longer giving it shelter from Apple with certain carriers. Apple in the winter sold nearly twice as many phones as HTC expected to sell this past season.

By Electronista Staff