HTC said sales in the second quarter more than doubled, fed by continued momentum in the smartphone market, and analysts continue to expect the company to perform well despite some doubts about its growth potential.
The Taiwanese company's second-quarter sales grew to $4.32 billion, more than double the year-ago period, CFO Winston Yung told Bloomberg. He said growth in the United States and Asia offset declines in Europe, and that the company hit its 11 million unit shipment target for the quarter. Yung said the company is poised for continued growth and is especially looking for the Sensation, which launched last month with T-Mobile USA, to be a success.
"If you look at the overall number, it's driven by the U.S., but if you look at the growth rate, the growth rate of Asia has been particularly high," Yung said. "We are very confident. I think we have launched a few products which will drive momentum all over the world and have high expectations for Sensation."
HTC's stock dipped 21 percent in June after analysts cut their recommendations, citing slow sales growth and intense competition. "Part of HTC's correction last month was due to market rumors that its June sales might be down or flat month-on-month, so the result yesterday helped clear up some of the rumors," Yuanta Securities analyst Bonnie Chang told Reuters.
Jack Tong, president of HTC North Asia, said in an interview with Dow Jones Newswires last month that the company remains comfortable with its forecast of reaching 50 million smartphone shipments this year, up from 25 million in 2010, which was a record for the company.
For more:
- see this Bloomberg article
- see this Reuters article
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