HTC sees profits soar on Android’s wings

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Being in Google’s gang seems to be paying off, especially for Taiwanese phone maker HTC which has seen its Q2 profits skyrocket by 33%, mostly thanks to the amazing success of its Android offerings. Indeed, for every two Android smartphones sold today, one is HTC made.
On unconsolidated revenue of over $1.9 billion (up 58% over last year) HTC announced $269 million in net profits, having shipped a whopping 5.4 million units last quarter. For comparison, in Q3 of 2009, the firm shipped just 2.8 million handsets.
Phones like the now infamous Evo 4G and the Droid Incredible have certainly helped HTC really come into its own after years and years of making unbranded handsets for other firms. Indeed, Google’s own Nexus One was HTC made, and some could speculate that a rumored Nexus Two would also likely emanate from the firm.
If the Nexus Two does tip up and was made by Motorola, however, that could prove a blow to HTC, especially if the phone has  the specs to match the current 4.3″ Android monsters already on the market and was GSM flavored like the original Nexus One, which had neither a sizeable screen or good camera.
Both the Droid X and Evo are CDMA, so if a Motorola Nexus Two did show up, HTC would have to put pedal to medal in order to pull its own GSM based EVO out of a hat – or face some rather dire dips in sales.
At the moment, though, HTC certainly doesn’t seem to be at all concerned that the above could happen, even raising its third-quarter guidance and predicting a 20% increase in phones shipped and twice the revenue for a whopping $2.2 billion.
That’s not to say it’s all plain sailing for HTC, with screen supply issues plaguing the firm to such an extent that it has had to make the strategic decision to move from AMOLED displays to Super Liquid Crystal Displays (SLCD) to avoid another HTC Droid Incredible shortage fiasco.
Then there’s also the legal grappling with Apple, although HTC brushes off the patent infringement lawsuits as inconsequential, saying they will have no impact on either earnings or sales.
Investors seem inclined to believe the firm, with HTC shares shooting up by 7% to $17.83.