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HTC profits jump 33 per cent

HTC profits jump 33 per cent

Profits are up by 33 per cent at HTC, driven by growing public interest in the Android operating system which the Taiwanese firm has harnessed.

From revenues of £1.19 billion, which are up by 58 per cent, HTC made £177 million in profit, thanks in part to the excellent Desire smartphone, which has taken advantage of the Android platform and the booming smartphone market as a whole.

HTC found that it struggled in 2009 as Windows Mobile, which it had previously supported in full, was no longer faring well. However, by backing Android it managed to turn around its performance in 2010 and its sales leapt by 37 per cent in the first quarter of the year.

Many believe that introducing a range of smartphones powered by the 1GHz Qualcomm processor helped it to build profits and profile in 2010, with average selling prices looking much healthier than in previous quarters.

HTC is on track to sell 20 million mobiles in 2010, according to current analyst predictions. This is up from 12 million in the previous year, allowing it to compete with its rivals at Apple and elsewhere on a level playing field.

Analyst Bonnie Change told the Wall Street Journal: "We expect the strong momentum to continue in the second half of the year as HTC will launch another round of new smartphone models in the third quarter."

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