HTC expects its smartphone shipments to reach 6.5 million units in the third quarter of 2010, an increase of 132% from a year earlier, while revenues will grow 15.7% sequentially and 106% on year to NT$70 billion (US$218.8 million) in the same period. Shipments of 5.4 million units and revenues of NT$60.5 billion in the second quarter were both quarterly records.

Limited volume was an issue for HTC's in the past, but beginning in the second quarter, its shipments have approached the size of some international brand vendors, the company pointed out. HTC was previously a niche market player, relying on a single hot product each year, said company CFO Cheng Hui-ming, noting that it now often has several big hits in the market simultaneously with the capability to generate several millions of units in sales.

The rapid rise in sales in 2010 is not a short-term fluctuation, but a strong indication that HTC has significantly improved its competitiveness, Cheng said. To accommodate the rising shipments, HTC plans to expand monthly capacity at its Taoyuan and Shanghai plants to two million and one million units, respectively, in the third quarter.

Regarding component shipments in the first half of 2010, Cheng indicated that HTC has added new sources for some components and communicated with suppliers to ensure sufficient supplies in the second half. Since the smartphone industry is still going through a rapid growth phase, it is not uncommon for demand to exceed supply, Cheng said, adding that smartphone sales for 2010 greatly surpassed forecasts made earlier in the year.