HTC projects shipments of 8.5 million smartphones and consolidated revenues of NT$94 billion (US$3.2 billion) for the first quarter of 2011, decreasing by 6.9% and 9.6% respectively on quarter but hiking by 157% and 147% on year, according to the company.

The company is more than conservative than many analysts who estimate its shipments to reach 9-9.5 million and consolidated revenues NT$100-110 billion for the period.

Of HTC's consolidated revenues for 2010, 50.6% came from North America, 32.3% from Europe and 17.1% from Asia and other emerging markets, the company indicated.

HTC transformed itself from a contract manufacturer to an own-brand vendor with in-house production in 2006 and started second-phase brand business operation in 2009, according to company president and CEO Peter Chou. Since second-phase goals have been attained ahead of schedule, HTC has come to the third phase, which focuses on brand management to enhance awareness of the HTC brand and to cultivate consumers' preference for HTC, Chou said.

To meet expected fast growth in demand, HTC will inject extra investment of US$32 million into its subsidiary, HTC Electronics (Shanghai), in eastern China, to increase its monthly capacity from one million smartphones currently to two million, Chou indicated, adding HTC will also expand the monthly capacity at its factory in northern Taiwan to more than four million smartphones.

In order to facilitate flexible use of its capacity, HTC is considering outsourcing production, Chou added.

Source: Company, compiled by Digitimes, January 2011