HTC releases record Q2 figures - HTC

HTC is poised to steal Apple's crown with record growth and profits during the second quarter of this year, according to the revenue figures released by the company today.

The Taiwan-based company saw unaudited net profit for the second quarter of 2010 rise by 32.8 percent, the highest it has seen since the recession began, suggesting that not only is the recession over for the mobile industry, HTC is in a better position within it than it was before.

Its net profit for April to June of this year was NT8.64 billion (£176 million), up from NT$6.51 billion (£133 million) from the same time last year. The share increase was NT$11.77 compared to NT$8.30 per share.

This is the highest quarterly unaudited net profit HTC has seen since the last quarter of 2007, where it saw profits of NT$9.99 billion (£204 million). At that time, however, Taiwanese companies did not treat employee bonuses as expenses, which impacted on the veracity of the net profit a company reported.

Overall HTC revenue rose 58.5 percent in the second quarter to NT$60.53 billion (£1.2 billion), up from NT$38.2 billion (£781 million), which is another record high for the company. In fact, HTC has been doing so well in the second quarter of this year that it managed a 60.6 percent increase on its first quarter revenue of NT$37.7 billion (£770 million).

One reason for the growth is clearly HTC's almost universal adoption of the Android operating system on its phones, which is seen by many as the strongest competitor to Apple's iPhone.

HTC even teamed up with Google for the latter's own-branded Nexus One, suggesting that the search giant considers HTC to be the top dog when it comes to making mobile phones, not to mention the most viable partnership to chip away at Apple's throne.

HTC is also the primary manufacturer of phones using Microsoft's Windows Phone operating system, with plans to release several Windows Phone 7 handsets when the new version launches later this year. It appears, however, that its close partnership with Google is where it will make the most profit over the next few years as the Apple versus Google war escalates.

HTC said that the record profits far exceeded its own estimates, which it had set as NT$50 billion (£1 billion) for the second quarter of this year, with shipments of 4.5 million units expected. With the smartphone craze still spreading like wildfire, which is, as it happens, one of HTC's phone titles, it appears likely that the Taiwan-based company will see more record profits to come.